Chapter 1 Public Utilities Commission

39-1-1. Declaration of policy — Purposes.

  1. The general assembly finds and therefore declares that:
    1. The businesses of distributing electrical energy, producing and transporting manufactured and natural gas, operating water works and furnishing supplies of water for domestic, industrial, and commercial use, offering to the public transportation of persons and property, furnishing and servicing telephonic and wireless audio and visual communication systems, and operation of community antenna television systems are affected with a public interest;
    2. Supervision and reasonable regulation by the state of the manner in which the businesses construct their systems and carry on their operations within the state are necessary to protect and promote the convenience, health, comfort, safety, accommodation, and welfare of the people, and are a proper exercise of the police power of the state; and
    3. Preservation of the state’s resources, commerce, and industry requires the assurance of adequate public transportation and communication facilities, water supplies, and an abundance of energy, all supplied to the people with reliability, at economical cost, and with due regard for the preservation and enhancement of the environment, the conservation of natural resources, including scenic, historic, and recreational assets, and the strengthening of long-range, land-use planning.
  2. It is hereby declared to be the policy of the state to provide fair regulation of public utilities and carriers in the interest of the public, to promote availability of adequate, efficient, and economical energy, communication, and transportation services and water supplies to the inhabitants of the state, to provide just and reasonable rates and charges for such services and supplies, without unjust discrimination, undue preferences or advantages, or unfair or destructive competitive practices, and to cooperate with other states and agencies of the federal government in promoting and coordinating efforts to achieve realization of this policy.
  3. To this end, there is hereby vested in the public utilities commission and the division of public utilities and carriers the exclusive power and authority to supervise, regulate, and make orders governing the conduct of companies offering to the public in intrastate commerce energy, communication, and transportation services and water supplies for the purpose of increasing and maintaining the efficiency of the companies, according desirable safeguards and convenience to their employees and to the public, and protecting them and the public against improper and unreasonable rates, tolls, and charges by providing full, fair, and adequate administrative procedures and remedies, and by securing a judicial review to any party aggrieved by such an administrative proceeding or ruling.
  4. The legislature also finds and declares, as of 1996, the following:
    1. That lower retail electricity rates would promote the state’s economy and the health and general welfare of the citizens of Rhode Island;
    2. That current research and experience indicates that greater competition in the electricity industry would result in a decrease in electricity rates over time;
    3. That greater competition in the electricity industry would stimulate economic growth;
    4. That it is in the public interest to promote competition in the electricity industry and to establish performance-based ratemaking for regulated utilities;
    5. That in connection with the transition to a more competitive electric utility industry, public utilities should have a reasonable opportunity to recover transitional costs associated with commitments prudently incurred in the past pursuant to their legal obligations to provide reliable electric service at reasonable costs;
    6. That it shall be the policy of the state to encourage, through all feasible means and measures, states where fossil-fueled, electric-generating units producing air emissions affecting Rhode Island air quality are located to reduce such emissions over time to levels that enable cost-effective attainment of environmental standards within Rhode Island; and
    7. That in a restructured electrical industry the same protections currently afforded to low-income customers shall continue.
  5. The legislature further finds and declares as of 2006:
    1. That prices of energy, including especially fossil-fuels and electricity, are rising faster than the cost of living and are subject to sharp fluctuations, which conditions create hardships for many households, institutions, organizations, and businesses in the state;
    2. That while utility restructuring has brought some benefits, notably in transmission and distribution costs and more efficient use of generating capacities, it has not resulted in competitive markets for residential and small commercial-industrial customers, lower overall prices, or greater diversification of energy resources used for electrical generation;
    3. That the state’s economy and the health and general welfare of the people of Rhode Island benefit when energy supplies are reliable and least-cost; and
    4. That it is a necessary move beyond basic utility restructuring in order to secure for Rhode Island, to the maximum extent reasonably feasible, the benefits of reasonable and stable rates, least-cost procurement, and system reliability that includes energy resource diversification, distributed generation, and load management.

History of Section. P.L. 1969, ch. 240, § 1; P.L. 1996, ch. 316, § 1; P.L. 2006, ch. 236, § 5; P.L. 2006, ch. 237, § 5.

Cross References.

Functions of department of business regulation, § 42-14-2 .

Public utilities commission, §§ 42-14.3-1 , 42-14.3-2 .

This title not affected by law concerning hazardous waste management, § 23-19.1-21 .

Comparative Legislation.

Public utilities:

Conn. Gen. Stat. § 16-1 et seq.

Mass. Ann. Laws ch. 25, § 1 et seq.

NOTES TO DECISIONS

Legislative Intent.

It is apparent from an examination of the enabling act that the legislature intended to establish a qualified administrative body to evaluate technical evidence, address the myriad of complex problems associated with regulatory proceedings, and render intelligent decisions. South County Gas Co. v. Burke, 551 A.2d 22, 1988 R.I. LEXIS 145 (1988).

In examining this title as a whole, it is evident that the Legislature has expressed its intent to cover the field of public-utilities regulation and has declared that the public utilities commission has exclusive power to regulate public utilities. Accordingly, a municipal ordinance regulating the construction of power lines was pre-empted by state law because it invaded a field that the state has intentionally occupied. East Greenwich v. O'Neil, 617 A.2d 104, 1992 R.I. LEXIS 209 (1992).

Legislature Determines Public Policy.

Generally the definition of what is wise or sound as public policy in the regulation of utilities is a matter to be determined, within constitutional limitations, primarily by the legislature and not by the courts. Main Realty Co. v. Blackstone Valley Gas & Elec. Co., 59 R.I. 29 , 193 A. 879, 1937 R.I. LEXIS 132 (1937).

Municipal Home Rule.

Considering the need for uniformity in the area of public utility regulatory policy and the extra-territorial effect of a municipal ordinance regulating the installation of power lines, the town’s ordinance was impermissibly one of statewide character and the ordinance constituted an action ultra vires of the authority delegated by the town’s home rule charter. East Greenwich v. O'Neil, 617 A.2d 104, 1992 R.I. LEXIS 209 (1992).

Powers of Commission.

The statutory sentiments of this section and § 39-1-38 represent a clear legislative intent to grant the commission broad powers as it seeks to establish a system of rates which will be just and equitable to all concerned including the utility and its customers. Rhode Island Chamber of Commerce Fed'n v. Burke, 443 A.2d 1236, 1982 R.I. LEXIS 829 (1982).

Local commission failed to show that the PUC exceeded its authority, acted illegally, arbitrarily, or unreasonably ordered retention and funding of an independent auditor; the auditor could not invade the prerogative of the local commission. In re Narragansett Bay Comm'n Gen. Rate Filing, 808 A.2d 631, 2002 R.I. LEXIS 187 (2002).

R.I. Gen. Laws § 39-1-1 limited the Rhode Island Public Utilities Commission’s (PUC’s) authority to regulating conduct of companies offering intrastate services to the public, and because voice messaging service (VMS) was an intrastate and an interstate service that could not be separated into intrastate and interstate services, the PUC exceeded its authority under § 39-1-1 (c) by ordering a telephone company to provide VMS to its competitors at a discounted rate. Verizon New Eng. Inc. v. R.I. PUC, 822 A.2d 187, 2003 R.I. LEXIS 128 (2003).

Public Utility Commission’s (PUC) decision to deny a county water authority’s (CWA) requested rate increase of 35 percent by limiting the funding of the CWA’s infrastructure replacement program did not conflict with the Comprehensive Clean Water Infrastructure Act of 1993 (CCWIA), R.I. Gen. Laws § 46-15.6-6 , because the PUC’s statutory authority in R.I. Gen. Laws § 39-1-1(c) could be read harmoniously with the CCWIA as consistent with the legislature’s design that the PUC review rate cases and protect the public from unreasonable rates, tolls, and charges. In re Kent County Water Auth. Change Rate Schedules, 996 A.2d 123, 2010 R.I. LEXIS 86 (2010).

Purposes of Chapters 1 to 5.

The legislature had the following purposes in mind by enactment of chapters 1 to 5 of this title: (1) to protect the public and the utility against improper or unreasonable rates, tolls and charges by providing a full, fair and adequate administrative remedy, (2) to secure to the aggrieved party a judicial review of administrative proceeding, and (3) to provide that procedure instituted be the exclusive remedy. New Eng. Tel. & Tel. Co. v. Kennelly, 75 R.I. 422 , 67 A.2d 705, 1949 R.I. LEXIS 72 (1949).

Ratemaking.

Although charged with consideration of consumer interests in fixing rates, the public utilities commission must not base its rulings on consumer ability to pay for services rendered, as consumer interests are adequately protected if the commission permits the utility to earn a return no greater than is necessary to maintain its financial health. Narragansett Elec. Co. v. Harsch, 117 R.I. 395 , 368 A.2d 1194, 1977 R.I. LEXIS 1707 (1977).

The provisions of this title manifest a legislative intention to vest the judicial attributes of ratemaking and utilities regulation in the public utilities commission and the administrative attributes in the division of public utilities and carriers; and in an appeal from a commission order it was harmless error to name the commissioners rather than the division or its administrator as respondents. Narragansett Elec. Co. v. Harsch, 117 R.I. 395 , 368 A.2d 1194, 1977 R.I. LEXIS 1707 (1977).

The commission’s “additional, implied and incidental power” granted in § 39-1-38 is broad enough to authorize the commission to require utilities to present acceptable books of account to support their requests for rate relief and to set specific standards to be met before those books will be deemed acceptable. Bristol & Warren Gas Co. v. Harsch, 119 R.I. 807 , 384 A.2d 298, 1978 R.I. LEXIS 625 (1978).

A utility seeking an increase in rates must establish not only that it requires an overall increase but that its proposed schedule of rates is nondiscriminatory. United States v. Public Utils. Comm'n, 120 R.I. 959 , 393 A.2d 1092, 1978 R.I. LEXIS 744 (1978).

The determination of the commission to exempt the first 300 kilowatt hours of electricity used by residential customers could not be sustained unless based upon competent evidence relevant to the issue of rate design. Blackstone Valley Chamber of Commerce v. Public Utils. Comm'n, 121 R.I. 122 , 396 A.2d 102, 1979 R.I. LEXIS 1750 (1979).

Restriction on Regulation.

While this title details a comprehensive plan of public utility regulation with primary responsibility of carrying out the plan being vested in the commission, there is also a clearly expressed legislative intent to restrict the commission’s regulation so that in the absence of an emergency a utility can expect a certain degree of permanency in the type of control exercised over it. Providence Gas Co. v. Burke, 119 R.I. 487 , 380 A.2d 1334, 1977 R.I. LEXIS 2055 (1977).

Court declined to abstain from considering whether the Pipefitters Act, R.I. Gen. Laws § 28-27-1 et seq., was preempted by federal law because the language of R.I. Gen. Laws §§ 39-1-1(c) , 28-27-29 were not ambiguous, and abstention would impose a considerable and unnecessary delay on the parties. There was also no ongoing administrative proceeding warranting Younger abstention, as the state admitted that it had no intention of enforcing the notices of violations it sent to the gas company concerning the failure of its employees to obtain pipefitter licenses. S. Union Co. v. Lynch, 321 F. Supp. 2d 328, 2004 U.S. Dist. LEXIS 11239 (D.R.I. 2004).

Scope of Application.

Although this section gives broad powers to the public utilities commission in its supervision over water utility companies, where a water main hookup agreement was no more than a private contract between a city and a group of individuals and the main was not part of the city’s water distribution system, the city’s hookup agreement did not fall within the section’s parameters and thus did not come within the purview of the act. Perron v. Treasurer of Woonsocket, 121 R.I. 781 , 403 A.2d 252, 1979 R.I. LEXIS 1978 (1979).

Collateral References.

Community antenna television systems (CATV) as subject to jurisdiction of state public utility or service commission. 61 A.L.R.3d 1150.

Incidental provision of utility services, by party not in that business, as subject to regulation by state regulatory authority. 85 A.L.R.4th 894.

Representation of another before state public utilities or service commission as involving practice of law. 13 A.L.R.3d 812.

39-1-2. Definitions.

  1. Terms used in this title shall be construed as follows, unless another meaning is expressed or is clearly apparent from the language or context:
    1. “Administrator” means the administrator of the division of public utilities and carriers.
    2. “Airport” and “landing field” mean and include all airports and landing fields other than those owned by the state.
    3. “Chairperson” means the chairperson of the public utilities commission.
    4. “Charter carrier” means and includes all carriers for hire or compensation within this state not included in the definition of common carrier.
    5. “Commission” means the public utilities commission.
    6. “Commissioner” means a member of the public utilities commission.
    7. “Common carrier,” except when used in chapters 12, 13, and 14 of this title, means and includes all carriers for hire or compensation, including railroads, street railways, express, freight and freight-line companies, dining-car companies, steam boat, motor boat, power boat, hydrofoil, and ferry companies and all other companies operating any agency or facility for public use in the conveyance over fixed routes, or between fixed termini within this state of persons or property by, or by a combination of, land, air, or water.
    8. “Company” means and includes a person, firm, partnership, corporation, quasi-municipal corporation, association, joint-stock association or company, and his, her, its, or their lessees, trustees, or receivers appointed by any court.
    9. “Customer” means a company taking service from an electric distribution company at a single point of delivery or meter location.
    10. “Distribution facility” means plant or equipment used for the distribution of electricity and that is not a transmission facility.
    11. “Division” means the division of public utilities and carriers.
    12. “Electric distribution company” means a company engaging in the distribution of electricity or owning, operating, or controlling distribution facilities and shall be a public utility pursuant to subsection (20) of this section.
    13. “Electric transmission company” means a company engaging in the transmission of electricity or owning, operating, or controlling transmission facilities. An electric transmission company shall not be subject to regulation as a public utility except as specifically provided in the general laws, but shall be regulated by the Federal Energy Regulatory Commission and shall provide transmission service to all nonregulated power producers and customers, whether affiliated or not, on comparable, nondiscriminatory prices and terms. Electric transmission companies shall have the power of eminent domain exercisable following a petition to the commission pursuant to § 39-1-31 .
    14. “Liquefied natural gas” means a fluid in the liquid state composed predominantly of methane and that may contain minor quantities of ethane, propane, nitrogen, or other components normally found in natural gas.
    15. “Manufacturing customers” means all customers that have on file with an electric distribution company a valid certificate of exemption from the Rhode Island sales tax indicating the customer’s status as a manufacturer pursuant to § 44-18-30 .
    16. “Motor carriers” means any carrier regulated by the administrator pursuant to chapters 3, 11, 12, 13, and 14 of this title.
    17. “Natural gas” means the combustible, gaseous mixture of low-molecular-weight, paraffin hydrocarbons, generated below the surface of the earth, containing mostly methane and ethane with small amounts of propane, butane, and hydrocarbons, and sometimes nitrogen, carbon dioxide, hydrogen sulfide, and helium.
    18. “Nonprofit housing development corporation” means a nonprofit corporation that has been approved as a 26 U.S.C. § 501(c)(3) corporation by the Internal Revenue Service, and is organized and operated primarily for the purpose of providing housing for low- and moderate-income persons.
    19. “Nonregulated power producer” means a company engaging in the business of producing, manufacturing, generating, buying, aggregating, marketing, or brokering electricity for sale at wholesale or for retail sale to the public; provided however, that companies that negotiate the purchase of electric generation services on behalf of customers and do not engage in the purchase and resale of electric generation services shall be excluded from this definition. A nonregulated power producer shall not be subject to regulation as a public utility except as specifically provided in the general laws.
    20. “Public utility” means and includes every company that is an electric distribution company and every company operating or doing business in intrastate commerce and in this state as a railroad, street railway, common carrier, gas, liquefied natural gas, water, telephone, telegraph, and pipeline company, and every company owning, leasing, maintaining, managing, or controlling any plant or equipment, or any part of any plant or equipment, within this state for manufacturing, producing, transmitting, distributing, delivering, or furnishing natural or manufactured gas, directly or indirectly, to or for the public, or any cars or equipment employed on, or in connection with, any railroad or street railway for public or general use within this state, or any pipes, mains, poles, wires, conduits, fixtures, through, over, across, under, or along any public highways, parkways, or streets, public lands, waters, or parks for the transmission, transportation, or distribution of gas for sale to the public for light, heat, cooling, or power for providing audio or visual telephonic or telegraphic communication service within this state, or any pond, lake, reservoir, stream, well, or distributing plant or system employed for the distribution of water to the consuming public within this state, including the water supply board of the city of Providence; provided, that, except as provided in § 39-16-9 and in P.L. 1933, ch. 2072, as amended, this definition shall not be construed to apply to any public waterworks or water service owned and furnished by any city, town, water district, fire district, or any other municipal or quasi-municipal corporation, excepting the water supply board of the city of Providence, unless any city, town, water district, fire district, municipal or quasi-municipal corporation obtains water from a source owned or leased by the water resources board, either directly or indirectly, or obtains a loan from the board pursuant to the provisions of chapter 15.1 of title 46, or sells water, on a wholesale or retail basis, inside and outside the territorial limits of the city or town, water district, fire district, municipal or quasi-municipal corporation, except, however, that a public waterworks or water service owned and furnished by any city, town, water district, fire district, or any other municipal or quasi-municipal corporation that sells water, on a wholesale or retail basis, inside and outside its territorial limits, shall not be construed as a public utility if it has fewer than one-thousand five hundred (1,500) total customer-service connections and provided outside sales do not exceed ten percent (10%) of the total water service connections or volumetric sales and provided the price charged to outside customers, per unit of water, is not greater than the price charged to inside customers for the same unit of water, nor to the Rhode Island public transit authority, or to the production and/or distribution of steam, heat, or water by the Rhode Island port authority and economic development corporation in the town of North Kingstown; and the term “public utility” shall also mean and include the Narragansett Bay water quality management district commission; and provided that the ownership or operation of a facility by a company that dispenses alternative fuel or energy sources at retail for use as a motor vehicle fuel or energy source, and the dispensing of alternative fuel or energy sources at retail from such a facility, does not make the company a public utility within the meaning of this title solely because of that ownership, operation, or sale; and provided further that this exemption shall not apply to presently regulated public utilities that sell natural gas or are dispensers of other energy sources; and provided further, that the term “public utility” shall not include any company:
      1. Producing or distributing steam or heat from a fossil-fuel-fired cogeneration plant located at the university of Rhode Island South Kingstown, Rhode Island;
      2. Producing and/or distributing thermal energy and/or electricity to a state-owned facility from a plant located on an adjacent site, regardless of whether steam lines cross a public highway; and
      3. Providing wireless service.
    21. “Purchasing cooperatives” shall mean any association of electricity consumers that join for the purpose of negotiating the purchase of power from a nonregulated power producer, provided however, that purchasing cooperatives shall not be required to be legal entities and are prohibited from being engaged in the re-sale of electric power.
    22. “Railroad” means and includes every railroad other than a street railway, by whatsoever power, operated for public use in the conveyance in this state of persons or property for compensation, with all bridges, ferries, tunnels, switches, spurs, tracks, stations, wharves, and terminal facilities of every kind, used, operated, controlled, leased, or owned by or in connection with any railroad.
    23. “Retail access” means the use of transmission and distribution facilities owned by an electric transmission company or an electric distribution company to transport electricity sold by a nonregulated power producer to retail customers pursuant to § 39-1-27.3 .
    24. “Street railway” means and includes every railway by whatsoever power operated or any extension or extensions, branch, or branches thereof, for public use in the conveyance in this state of persons or property for compensation, being mainly upon, along, above, or below any street, avenue, road, highway, bridge, or public place in any city or town, and including all switches, spurs, tracks, rights of trackage, subways, tunnels, stations, terminals, and terminal facilities of every kind, used, operated, controlled, or owned by or in connection with any street railway.
    25. “Transmission facility” means plant or equipment used for the transmission of electricity as determined by the Federal Energy Regulatory Commission pursuant to federal law as of the date of the property transfers pursuant to § 39-1-27(c) .
    26. “Wireless service” means communication services provided over spectrum licensed by or subject to the jurisdiction of the Federal Communications Commission.
  2. Notwithstanding any provision of this section or any provision of the act entitled, “An Act Relating to the Utility Restructuring Act of 1996” (hereinafter “utility restructuring act”), upon request by the affected electric utility, the commission may exempt from the utility restructuring act or any provision(s) thereof, an electric utility that meets the following requirements:
    1. The utility is not selling or distributing electricity outside of the service territory in effect for that utility on the date of passage of the utility restructuring act; and
    2. The number of kilowatt hours sold or distributed annually by the utility to the public is less than five percent (5%) of the total kilowatt hours consumed annually by the state. Provided, however, that nothing contained in this section shall prevent the commission from allowing competition in the generation of electricity in service territories of utilities exempted in whole or in part from the utility restructuring act pursuant to this section, as long as such allowance of competition is conditioned upon payment to the exempted electric utility of a nonbypassable transition charge calculated to recover the elements comparable in nature to the elements in § 39-1-27.4(b) and (c) taking into consideration any unique circumstances applicable to the exempted electric utility.

History of Section. P.L. 1912, ch. 795, § 2; G.L. 1923, ch. 253, § 2; P.L. 1936 (s.s.), ch. 2438, § 1; G.L. 1938, ch. 122, § 2; impl. am. P.L. 1939, ch. 660, §§ 120, 122; impl. am. P.L. 1952, ch. 2876, § 1; G.L. 1956, § 39-1-2 ; P.L. 1967, ch. 156, § 2; P.L. 1969, ch. 240, § 1; P.L. 1971, ch. 265, § 1; P.L. 1972, ch. 205, § 1; P.L. 1976, ch. 270, § 1; P.L. 1976, ch. 277, § 11; P.L. 1980, ch. 335, § 6; P.L. 1983, ch. 235, § 2; P.L. 1988, ch. 421, § 1; P.L. 1988, ch. 580, § 1; P.L. 1991, ch. 49, § 1; P.L. 1992, ch. 133, art. 34, § 2; P.L. 1993, ch. 103, § 1; P.L. 1994, ch. 227, § 1; P.L. 1996, ch. 316, § 1; P.L. 1997, ch. 357, § 1; P.L. 1998, ch. 331, § 1; P.L. 2013, ch. 121, § 2; P.L. 2013, ch. 135, § 2; P.L. 2020, ch. 79, art. 1, § 2.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

Cross References.

Application of chapters to Kent county water district, § 39-16-9 .

NOTES TO DECISIONS

Conflicting Status Determinations.

When the public utility commission and the superior court in interpreting this section arrive at opposite determinations concerning a limited partnership’s status as a public utility, the declaratory judgment of the commission is entitled to deference and is applicable for purposes of tax exemption determinations provided by § 44-3-3(20), (22). Pawtucket Power Assocs. Ltd. Partnership v. Pawtucket, 622 A.2d 452, 1993 R.I. LEXIS 72 (1993).

Kent County Water Authority.

The Kent county water authority is not a true body politic in the nature of a quasi-municipal corporation exercising a part of the sovereign power of the state such as the legislature intended to exempt from the provisions of chapters 1 to 5 of this title, so the authority must file a schedule of its rates and a copy of its rules and regulations in compliance with those chapters. Kennelly v. Kent County Water Auth., 79 R.I. 376 , 89 A.2d 188, 1952 R.I. LEXIS 58 (1952).

Nonregulated Power Producer.

Wind turbine was not subject to taxation because the manufacturing equipment exemption applied; an exception to the exemption did not apply here based on a sale of electricity from the turbine to a National Grid. Rather, the exception excluded from the exemption only those nonregulated power producers commencing commercial operation by selling electricity at retail or taking title to generating facilities on or after July 1, 1997. DePasquale v. Cwiek, 129 A.3d 72, 2016 R.I. LEXIS 5 (2016).

Providence Water Supply Board.

The provisions of the 1967 amendment that brought within the jurisdiction of the commission those public waterworks that sell water beyond their territorial limits were implicitly repealed, as they apply to the Providence Water Supply Board, by more recently enacted special legislation. Providence by Water Supply Bd. v. Public Utils. Comm'n, 414 A.2d 465, 1980 R.I. LEXIS 1563 (1980).

Collateral References.

Community antenna television systems (CATV) as subject to jurisdiction of state public utility commission. 61 A.L.R.3d 1150.

39-1-2.1. Presumption of in-state use or intrastate commerce upon use or transportation of liquefied natural gas within the state.

Whereas it is in the public interest of the state that the personal safety of its inhabitants and visitors be protected, and that property situated within the borders of the state be safeguarded, and whereas it is well known and accepted that the use, storage, transmission, or transportation of liquefied natural gas involves an opportunity for the cause of personal injury or property damage, the general assembly hereby declares that the reasonable exercise of its police power for the safety and welfare of the inhabitants and visitors of the state and for the protection of property located within the state requires the control and regulation of the use, storage, transmission, and transportation of liquefied natural gas. Accordingly, the use, storage, transmission, or transportation of liquefied natural gas within the state shall raise a presumption that the liquefied natural gas is intended for use or consumption within the state or for transmission or transportation from one place to another within the state; and the general laws of the state applicable to public utilities and carriers and the rules and regulations promulgated thereunder shall apply thereto; provided, however, (1) That in the safety and security zone for LNG tankers in transit upon the navigable waterways of the state of Rhode Island, established by the United States Coast Guard by 33 C.F.R. § 165.121, and authorized by the United States Code Title 33 Chapter 25 Section 1225, there shall be no:

  1. LNG ships in transit must maintain an exclusion zone of two (2) miles ahead, one mile behind; five hundred (500) yards on either side, and thirty (30) feet overhead clearance within which there shall be no:
    1. Persons;
    2. Piers, wharves, docks, bulkheads, or similar structures within or contiguous to navigable structures;
    3. Waterfront facilities on land located within the state of Rhode Island;
    4. Flammable materials;
    5. Hunting grounds or areas from which an incendiary device could be launched; or
    6. Welding, torch cutting, or other hotwork within such prescribed safety and security zone.

History of Section. P.L. 1976, ch. 270, § 1; P.L. 2006, ch. 565, § 1.

Compiler’s Notes.

This section is set out as it appears in P.L. 2006, ch. 565.

Cross References.

Regulation of liquefied natural gas facilities, § 45-2-17 .

Federal Act References.

The U.S. Code provision referenced in this section, 33 U.S.C. § 1225, was repealed in 2018 by Pub. L. No. 115-282, Title IV, § 402(e).

NOTES TO DECISIONS

Constitutionality.

Regulations promulgated pursuant to state law and concerning two-way radios, immediate reporting of accidents, illumination of headlights and inspections of vehicles transporting liquefied natural and petroleum gases are reasonable means of serving legitimate state interests and are not violative of the commerce or equal protection clauses. National Tank Truck Carriers, Inc. v. Burke, 535 F. Supp. 509, 1982 U.S. Dist. LEXIS 17473 (D.R.I. 1982), aff'd, 698 F.2d 559, 1983 U.S. App. LEXIS 30885 (1st Cir. 1983).

Federal Preemption.

Regulations promulgated pursuant to this section and concerning applications and permits for the transportation of liquefied natural and petroleum gases, a curfew on the hours of transportation and subsequent written notice of accidents were preempted by the Hazardous Materials Transportation Act, 49 U.S.C. § 1801 et seq. National Tank Truck Carriers, Inc. v. Burke, 535 F. Supp. 509, 1982 U.S. Dist. LEXIS 17473 (D.R.I. 1982), aff'd, 698 F.2d 559, 1983 U.S. App. LEXIS 30885 (1st Cir. 1983).

Collateral References.

What constitutes “sale in interstate commerce of natural gas for resale,” so as to be subject to regulation under § 1(b) of Natural Gas Act (15 U.S.C. § 717(b)). 73 A.L.R. Fed. 804.

39-1-3. Commission and division established — Functions of commission — Administrator.

  1. To implement the legislative policy set forth in § 39-1-1 and to serve as the agencies of the state in effectuating the legislative purpose, there are hereby established a public utilities commission and a division of public utilities and carriers. The commission shall serve as a quasi-judicial tribunal with jurisdiction, powers, and duties to implement and enforce the standards of conduct under § 39-1-27.6 and to hold investigations and hearings involving the rates, tariffs, tolls, and charges, and the sufficiency and reasonableness of facilities and accommodations of railroad, gas, electric distribution, water, telephone, telegraph, and pipeline public utilities; the location of railroad depots and stations, and the control of grade crossings; the revocation, suspension, or alteration of certificates issued pursuant to § 39-19-4 ; appeals under § 39-1-30 ; petitions under § 39-1-31 ; and proceedings under § 39-1-32 .
  2. The administrator shall be a person who is not a commissioner and who shall exercise the jurisdiction, supervision, powers, and duties not specifically assigned to the commission, including the execution of all laws relating to public utilities and carriers and all regulations and orders of the commission governing the conduct and charges of public utilities and who shall perform other duties and have powers as are hereinafter set forth. The administrator shall be a person who is appointed by the governor for an initial term of six (6) years. The administrator shall be appointed with the advice and consent of the senate. The director of administration, with the approval of the governor, shall allocate the administrator to one of the grades established by the pay plan for unclassified employees. The public utilities administrator also shall have powers and duties as provided in § 46-15.3-20 .

History of Section. P.L. 1969, ch. 240, § 1; P.L. 1973, ch. 199, § 1; P.L. 1980, ch. 335, § 6; P.L. 1995, ch. 188, § 3; P.L. 1996, ch. 316, § 1.

Cross References.

Administrator in unclassified service, § 36-4-2 .

NOTES TO DECISIONS

Counsel.

The people and rate payers of the state may properly be represented by the attorney general in seeking review of the commission’s decision and the attorney general need not be precluded from seeking such review merely because he has previously represented the division as counsel. Providence Gas Co. v. Burke, 419 A.2d 263, 1980 R.I. LEXIS 1797 (1980).

In any case in the discretion of the administrator (chairman), the attorney general may be retained in order to represent the division in proceedings before the public utilities commission. In the event that the administrator (chairman) foresees that there will be a conflict between the division and the attorney general, he may, of course, retain independent counsel to represent the division. Providence Gas Co. v. Burke, 419 A.2d 263, 1980 R.I. LEXIS 1797 (1980).

Functions of Division.

It is the function of the division to serve the commission in bringing to it all relevant evidence, facts, and arguments that will lead the commission in its quasi-judicial capacity to reach a just result. Providence Gas Co. v. Burke, 419 A.2d 263, 1980 R.I. LEXIS 1797 (1980).

Powers of Commission.

When a commission pronounces that a specific rate is a “reasonable and lawful rate for the future,”that pronouncement has the force and effect of a statute. Narragansett Elec. Co. v. Burke, 122 R.I. 13 , 404 A.2d 821, 1979 R.I. LEXIS 2081 (1979), cert. denied, 444 U.S. 1079, 100 S. Ct. 1031, 62 L. Ed. 2d 763, 1980 U.S. LEXIS 756 (1980).

The commission has exclusive jurisdiction to determine the rates of public utilities. Inherent in any rate proceeding is the question of what expenses are properly included as a utility’s operating expense. New Shoreham v. Rhode Island Pub. Utils. Comm'n, 464 A.2d 730, 1983 R.I. LEXIS 1043 (1983).

Review of Commission Decision.

Once the commission has made its decision, it is inappropriate for the division and its administrator (chairman) to challenge that decision, even when the administrator (chairman) has dissented from the decision. Providence Gas Co. v. Burke, 419 A.2d 263, 1980 R.I. LEXIS 1797 (1980).

39-1-4. Composition of commission — Terms — Vacancies.

  1. The public utilities commission shall consist of three (3) electors selected with regard to their qualifications and experience in law and government, energy matters, economics and finance, engineering and accounting, and appointed by the governor with the advice and consent of the senate. The term of each commissioner shall be six (6) years. The director of administration, with the approval of the governor, shall allocate the position of each commissioner to one of the grades established by the pay plan for unclassified employees.
  2. During the month prior to the expiration of the term of a commissioner, the governor, with the advice and consent of the senate shall appoint a commissioner to succeed the commissioner whose term will then next expire, to serve for a term of six (6) years commencing on the first day of March then next following, and until his or her successor is appointed and qualified. A commissioner shall be eligible to succeed him or herself. Upon the expiration of the term of the chairperson, the governor may designate any commissioner as chairperson.
  3. A vacancy in the office of a commissioner, other than by expiration, shall be filled in like manner as an original appointment, but only for the unexpired portion of the term. If a vacancy occurs when the senate is not in session, the governor shall appoint a person to fill the vacancy, but only until the senate shall next convene and give its advice and consent to a new appointment.

History of Section. P.L. 1969, ch. 240, § 1; P.L. 2002, ch. 144, § 1; P.L. 2010, ch. 23, art. 7, § 12.

NOTES TO DECISIONS

Finality of Decisions.

Once the commission has made its decision, it is inappropriate for the division and its administrator (chairman) to challenge that decision, even when the administrator (chairman) has dissented from the decision. Providence Gas Co. v. Burke, 419 A.2d 263, 1980 R.I. LEXIS 1797 (1980).

39-1-5. Removal of commissioner from office.

Commissioners may at any time be removed from office by the governor for inefficiency, neglect of duty, or malfeasance in office, but no commissioner shall be removed from office without an opportunity to be heard, publicly before the governor and after being given notice in writing of the charges against him or her. A copy of the charges and a transcript of the record of the hearing shall be filed with the secretary of state.

History of Section. P.L. 1969, ch. 240, § 1; P.L. 1996, ch. 316, § 1.

39-1-6. Holding over in office.

When the term of office of a commissioner shall expire, and he or she has participated in hearing all or a substantial part of the evidence in a proceeding pending before the commission, he or she shall remain a commissioner for the sole purpose of completing the hearing and deciding the pending matter and signing the findings, orders, and judgments therein. For such services, the commissioner shall be paid reasonable compensation and necessary expenses as fixed by the commission as composed following the expiration of his or her term of office. For this purpose, a proceeding shall be deemed completed when the commission enters its final order therein regardless of whether the order is or may be appealed to the supreme court and the case remanded to the commission for further proceedings.

History of Section. P.L. 1969, ch. 240, § 1; P.L. 1996, ch. 316, § 1.

NOTES TO DECISIONS

Applicability to Commissioner Who Resigns.

This section is not applicable where the nonparticipating commissioner is not absent because his term on the commission has expired but because he has resigned from the commission to pursue employment in California. In re Narragansett Elec. Co., 544 A.2d 121, 1988 R.I. LEXIS 104 (1988).

39-1-7. Powers of commission — Seal.

  1. The commission shall have the powers of a court of record in the determination and adjudication of all matters over which it is given jurisdiction. It may make orders and render judgments and enforce the same by any suitable process issuable by the superior court. The commission shall have an official seal, which shall have engraved thereon the words: “State of Rhode Island. Public Utilities Commission Seal.”
  2. The commission shall have the power to do a complete audit of the books of all public utilities doing business in this state. The audit shall consider the cost of energy acquisition and all other aspects that the commission deems necessary.

History of Section. P.L. 1912, ch. 795, § 7; G.L. 1923, ch. 253, § 7; G.L. 1938, ch. 122, § 5; G.L. 1956, § 39-1-4 ; G.L. 1956, § 39-1-7 ; P.L. 1969, ch. 240, § 1; P.L. 1979, ch. 102, § 1; P.L. 1996, ch. 316, § 1.

Compiler’s Notes.

In 2021, “State of Rhode Island” was substituted for “State of Rhode Island and Providence Plantations” in this section at the direction of the Law Revision Director to reflect the 2020 amendments to the state constitution that changed the state's name.

Collateral References.

Community antenna television systems (CATV) as subject to jurisdiction of state public utility or service commission. 61 A.L.R.3d 1150.

39-1-8. Quorum — Meetings.

Two (2) commissioners shall constitute a quorum for the transaction of any business, except as provided in § 39-1-11 . Meetings of the commission may be held at any time or place upon the call of any member, after a reasonable notice by mail or telephone to the other members, and shall be held at such times and places as in the judgment of the commission will best serve the convenience of all parties in interest.

History of Section. P.L. 1969, ch. 240, § 1; P.L. 1979, ch. 95, § 2; P.L. 2002, ch. 144, § 1; P.L. 2010, ch. 23, art. 7, § 12.

NOTES TO DECISIONS

Decisions by Two Commissioners.

Participation by two members of the commission is permitted, and therefore findings, decisions, and orders rendered by two commissioners are valid. In re Narragansett Elec. Co., 544 A.2d 121, 1988 R.I. LEXIS 104 (1988).

39-1-9. Clerk — Oath of office.

The commission shall appoint an employee of the division as its clerk, who shall serve during its pleasure. The commissioners and clerk shall be sworn to the faithful discharge of the duties of their offices and, before entering upon their offices, shall file a certificate of their oaths for record in the office of the secretary of state.

History of Section. P.L. 1969, ch. 240, § 1.

39-1-10. Powers and duties of clerk.

The clerk shall have the custody of the seal of the commission; have general charge of the office; keep a full record of its proceedings; file and preserve at its office all documents and papers entrusted to his or her care; prepare such papers and notices as may be required of him or her by the commission; and perform such other duties as it may prescribe. The clerk shall have power to issue subpoenas for witnesses and to administer oaths in all cases before the commission or pertaining to the duties of the office.

History of Section. P.L. 1969, ch. 240, § 1.

39-1-11. Proceedings before commission.

The commission shall adopt reasonable rules and regulations governing the procedure to be followed in any matter that may come before it for a hearing, and in the hearing the commission shall not be bound by technical rules of evidence. The commission shall sit as an impartial, independent body, and is charged with the duty of rendering independent decisions affecting the public interest and private rights based upon the law and upon the evidence presented before it by the division and by the parties in interest. The presence of one commissioner shall constitute a quorum at all hearings, provided that the concurrence of a majority of the commission shall be required for the rendering of a decision.

History of Section. P.L. 1969, ch. 240, § 1; P.L. 1979, ch. 95, § 2.

NOTES TO DECISIONS

Admissibility of Evidence.

Since the commission is not bound by technical rules of evidence, its action in allowing expert testimony and exhibits to remain on the record, even though foundation was laid for the testimony after the exhibits were received, was proper. Providence Gas Co. v. Burman, 119 R.I. 78 , 376 A.2d 687, 1977 R.I. LEXIS 1874 (1977).

The Public Utilities Commission is free to pick and choose even between inconsistent portions of an expert’s testimony. Valley Gas Co. v. Burke, 446 A.2d 1024, 1982 R.I. LEXIS 898 (1982).

Decisions by Two Commissioners.

Participation by two members of the commission is permitted, and therefore findings, decisions, and orders rendered by two commissioners are valid. In re Narragansett Elec. Co., 544 A.2d 121, 1988 R.I. LEXIS 104 (1988).

Interested Parties.

In hearings before the public utilities commission, the division of public utilities and carriers, represented by the attorney general in most instances, assumes a role similar to that of a party in interest, appearing on behalf of the public to present evidence and make arguments before the commission. Narragansett Elec. Co. v. Harsch, 117 R.I. 395 , 368 A.2d 1194, 1977 R.I. LEXIS 1707 (1977).

Neutral Attitude.

The attitude of the commission should be detached and neutral as is expected from an impartial, independent body and, when the commission makes comments concerning the relationship of the telephone company and its supplier or makes a deduction in the company’s operating expense without sufficient substantiation, such adjustments made on the basis of conjecture will be remanded to the commission for a supplementary decision. Rhode Island Consumers' Council v. Smith, 111 R.I. 271 , 302 A.2d 757, 1973 R.I. LEXIS 1205 (1973).

39-1-12. Prehearing procedure — Formulating issues — Copies of exhibits.

Prior to the commencement of any formal hearing, the commission may, in its discretion, direct the parties or their attorneys to appear before it for a conference. At or before the conference, the commission may order any party to file a number of copies, as it may specify, of all exhibits it intends to use in the hearing, and the names and addresses of witnesses it intends to produce in its direct case, together with a short statement of the purposes of each exhibit and of the testimony of each witness. After entry of an order, a party shall not be permitted, except in the discretion of the commission, to introduce into evidence, in its direct case, exhibits that are not filed in accordance with the order. At the conference, the commission may designate a date before which it requires any party in interest to specify what items shown by the filed exhibits are conceded, and further proof of conceded items shall not be required. The commission may also require the parties to simplify the issues; to consider admissions of fact and of documents that will avoid unnecessary proof; and to limit the number of expert witnesses. The commission shall enter an order reciting the concessions and agreements made by the parties, and unless modified at the hearing to prevent manifest injustice, the hearing shall be controlled by the order.

History of Section. P.L. 1969, ch. 240, § 1; P.L. 1996, ch. 316, § 1.

NOTES TO DECISIONS

Exhibits.

Although the telephone company used an exhibit in a rate increase hearing before the public utilities commission that had not been listed with the commission or introduced at a conference prior to the hearing as required by this section, such exhibit could still be introduced into evidence at the discretion of the commission. Rhode Island Consumers' Council v. Smith, 111 R.I. 271 , 302 A.2d 757, 1973 R.I. LEXIS 1205 (1973).

An exhibit which has not been prefiled may still make its way into evidence if the commission, in the exercise of its discretion, thinks it necessary. Providence Gas Co. v. Burman, 119 R.I. 78 , 376 A.2d 687, 1977 R.I. LEXIS 1874 (1977).

39-1-13. Subpoena powers of commissioners.

The commissioners are hereby severally authorized and empowered to administer oaths; and the commission, in all cases of every nature pending before it, is hereby authorized and empowered to summon and examine witnesses and to compel the production and examination of papers, books, accounts, documents, records, certificates, and other legal evidence that may be necessary or proper for the determination and decision of any question before or the discharge of any duty required by law of the commission. All subpoenas and subpoenas duces tecum shall be signed by the chairperson or by the clerk, and shall be served as subpoenas are served in civil cases in the superior court; and witnesses so subpoenaed shall be entitled to the same fees for attendance and travel as are provided for witnesses in civil cases in the superior court. If any person fails to obey the command of the subpoena, without reasonable cause, or if a person in attendance before the commission shall, without reasonable cause, refuse to be sworn, or to be examined, or to answer a legal and pertinent question, any commissioner may apply to any justice of the superior court, upon proof by affidavit of the fact, for a rule or order returnable in not less than two (2) nor more than five (5) days, directing the person to show cause why he or she should not be adjudged in contempt. Upon the return of the order, the justice before whom the matter is brought for a hearing shall examine under oath the person, and the person shall be given an opportunity to be heard, and if the justice shall determine that the person has refused without reasonable cause or legal excuse to be examined, or to answer a legal and pertinent question, or to produce books, accounts, papers, records, and documents material to the issue that he or she was ordered to bring or produce, he or she may forthwith commit the person to the adult correctional institutions, there to remain until he or she submits to do the act that he or she was so required to do, or is discharged according to law.

History of Section. P.L. 1969, ch. 240, § 1.

Cross References.

Power of administrator to administer oaths, § 36-2-3 .

NOTES TO DECISIONS

Evidence Before Administrator.

The action of the public utility hearing board in admitting in evidence, at the instance of the administrator, and considering the transcript of testimony taken before him was neither unlawful nor prejudicial to the rights of the objectors, and the board did not exceed its jurisdiction in so acting. Yellow Cab Co. v. Public Util. Hearing Bd., 73 R.I. 217 , 54 A.2d 28, 1947 R.I. LEXIS 67 (1947).

Subpoena Power.

Within the context of a rate hearing case pending before it, the Rhode Island Public Utilities Commission may obtain information through its subpoena power under R.I. Gen. Laws § 39-1-13 . In re New Eng. Gas Co., 842 A.2d 545, 2004 R.I. LEXIS 42 (2004).

39-1-14. [Repealed.]

History of Section. G.L. 1956, § 39-1-14 ; P.L. 1969, ch. 240, § 1; Repealed by P.L. 1979, ch. 95, § 1.

Compiler’s Notes.

Former § 39-1-14 concerned powers of single commissioner. For current provisions of law, see § 39-1-11 .

39-1-15. Investigators and examiners.

For effective administration, supervision, and regulation of public utilities, communications carriers, and common or contract carriers, the administrator, at his or her discretion, may designate examiners, investigators, hearing officers, or one or more agents of the division to make investigations and conduct hearings. In conducting investigations and hearings, the administrator and every person designated therefor by him or her shall be vested with all the powers conferred on the chairperson of the commission by § 39-1-13 . Upon completion of his or her investigation and hearing, the person hearing or investigating shall file his or her recommended decision and findings in writing with the administrator; and the decision and findings, when approved by the administrator, shall have the same force and effect as a decision and findings by the administrator. The administrator may, however, at his or her discretion, upon considering the evidence in the matter at issue and the written recommended decision as filed by the hearing officer, agent, examiner, or investigator, decide the matter in hearing or under investigation him or herself, and in such case, the decision of the administrator with his or her findings shall become effective when signed and filed by him or her.

History of Section. P.L. 1912, ch. 795, § 13; G.L. 1923, ch. 253, § 13; G.L. 1938, ch. 122, § 10; G.L. 1956, § 39-1-12 ; R.P.L. 1957, ch. 90, § 1; G.L. 1956, § 39-1-15 ; P.L. 1969, ch. 240, § 1; P.L. 1973, ch. 199, § 1.

39-1-15.1. Enforcement powers of inspectors.

Examiners, field investigators, hearing officers, regulatory inspectors, and other employees of the division designated by the administrator with respect to the enforcement of the provisions of chapters 12 through 14.1 inclusive of this title, shall have and exercise, throughout this state, all powers of police officers including the power to arrest, without warrant, any person who violates any provision of the chapters, and the agents may serve all process lawfully issued by the administrator. Whenever a complaint is made of any violation of the provisions of chapters 12 through 14.1 inclusive of this title, by any examiner, field investigator, hearing officer, regulatory inspector, or any other employee of the division, he or she shall not be required to furnish surety for costs or be liable for costs upon any complaint.

History of Section. P.L. 2012, ch. 82, § 1; P.L. 2012, ch. 178, § 1.

39-1-15.2. Enforcement by police departments.

The administrator is hereby authorized to avail himself or herself of state, city, and town police departments as are, or may hereafter be, existing by law, to enforce the provisions of chapters 12 through 14.1 inclusive of this title and the rules, regulations, and orders of the administrator made under the chapters; and the police departments are hereby given the necessary authority and power, in addition to those they now possess, to carry into effect the directions of this section.

History of Section. P.L. 2012, ch. 82, § 1; P.L. 2012, ch. 178, § 1.

39-1-16. Depositions.

In any investigation or hearing conducted by virtue of this title, the person designated to conduct the hearing may cause the deposition of witnesses, wherever residing, to be taken in the manner and used for the purposes prescribed by law for taking depositions in civil actions in the superior court.

History of Section. P.L. 1969, ch. 240, § 1.

39-1-17. Consumers’ council participation.

In any inquiry into, or examination of, any matter wherein tariffs, rates, or charges for, or the cost of, or the quality, standard, or extent of, any service or commodities are requested by the division, and in every formal hearing conducted by the division, the consumers’ council shall be deemed to be an interested party for all purposes, and as such, shall receive all notices and may file complaints, institute proceedings, participate as a party in administrative hearings, and institute or participate in any appeal to the supreme court as an aggrieved party.

History of Section. P.L. 1969, ch. 240, § 1.

39-1-18. Hearings and records — Certified copies.

  1. All hearings and orders of the commission and of the division, and the records thereof, shall be public and any person shall be permitted to record all or any portion of a hearing by way of camera, video, or tape recorder of any kind, unless a party to the hearing requests, and the chairperson or administrator grants the request, that the recording be prohibited for the protection of attorney-client privilege, confidentiality, or other interest of the parties. All reports, records, files, books, and accounts in the possession of the commission or the division shall be open to inspection by the public at all reasonable times. The division may charge and collect reasonable fees for copies of official documents, orders, papers, and records, and for authenticating or certifying the same; provided that no fee shall be charged for single copies of official documents, orders, papers, and records, furnished to public officers of the state for use in their official capacity, or for the annual reports in the ordinary course of distribution.
  2. All filings made to the division or commission shall also be provided digitally in a manner established by the division. The commission and division may adopt rules exempting filings from this requirement.
  3. In order to support the ability of the public and interested parties to stay informed of the activities of the commission and the division, and to promote awareness of utility restructuring, the division shall maintain a site on the internet through which the public may access:
    1. Notices of and agendas of hearings;
    2. All filings that are available in digital format and that are not subject to protective orders;
    3. All orders, rules, and regulations of the commission or administrator;
    4. Announcements of, agendas for, and minutes of open meetings;
    5. A calendar of all forthcoming open meetings and hearings;
    6. Current tariffs of all public utilities subject to assessment pursuant to § 39-1-23 ; provided, however, that the division may require any public utility with extensive tariffs to maintain a website and provide access to those tariffs via a link from the division’s website;
    7. A listing of all public utilities and nonregulated power producers, together with consumer contact information for each;
    8. Consumer information on billing dispute resolution, retail access, conservation, and consumer-assistance programs;
    9. Demand-side management programs available to residential, commercial, and industrial customers; and
    10. Other information as the division deems relevant and useful to the public.

History of Section. P.L. 1912, ch. 795, § 9; G.L. 1923, ch. 253, § 9; P.L. 1929, ch. 1394, § 1; G.L. 1938, ch. 122, § 7; G.L. 1956, § 39-1-7 ; G.L. 1956, § 39-1-18 ; P.L. 1969, ch. 240, § 1; P.L. 1973, ch. 199, § 1; P.L. 1996, ch. 316, § 1; P.L. 2002, ch. 144, § 1; P.L. 2003, ch. 409, § 1; P.L. 2006, ch. 216, § 9.

39-1-19. Personnel — Legal representation.

  1. To carry out the purposes of this title, the commission and the division, within the appropriation therefor, are authorized to employ such clerks, stenographers, engineers, accountants, and agents as may be required, who shall be in the classified service, and may also retain and employ experts, consultants, and assistants on a contract or other basis for rendering legal, financial, professional, technical, or other assistance or advice.
  2. When requested by the administrator, the attorney general, or an assistant designated by him or her, shall appear and represent the division in any hearing, investigation, action, or proceeding under this title, or in reference to any act or proceeding of the division, and intervene in any action or proceeding in which is involved any question arising under this title. In all cases in which the attorney general or an assistant intervenes on behalf of the state as a customer of a public utility, or on behalf of the citizens of the state, as customers of a public utility, the division may employ legal counsel to represent it, as provided for in § 39-1-20 .

History of Section. P.L. 1912, ch. 795, §§ 10, 12; G.L. 1923, ch. 253, §§ 10, 12; G.L. 1938, ch. 122, §§ 8, 9; G.L. 1956, §§ 39-1-10 , 39-1-11 ; G.L. 1956, § 39-1-19 ; P.L. 1969, ch. 240, § 1; P.L. 1975, ch. 277, § 1.

NOTES TO DECISIONS

Representation of Division.

Except when the interests of the division and the state or its citizens conflict, this section requires the attorney general to represent the division in hearings before the public utilities commission and in appeals from the commission. Narragansett Elec. Co. v. Harsch, 117 R.I. 395 , 368 A.2d 1194, 1977 R.I. LEXIS 1707 (1977).

In any case in the discretion of the administrator, the attorney general may be retained in order to represent the division in proceedings before the public utilities commission. In the event that the administrator foresees that there will be a conflict between the division and the attorney general, he may, of course, retain independent counsel to represent the division. Providence Gas Co. v. Burke, 419 A.2d 263, 1980 R.I. LEXIS 1797 (1980).

In the event of a petition for review of a commission decision, brought by a utility that is aggrieved by such decision, the division may in the discretion of its administrator continue to seek the services of the attorney general or may engage independent counsel in the event of a conflict of positions between the division and the attorney general. Providence Gas Co. v. Burke, 419 A.2d 263, 1980 R.I. LEXIS 1797 (1980).

Representation of Ratepayers.

The people and rate payers of the state may properly be represented by the attorney general in seeking review of the commission’s decision and the attorney general need not be precluded from seeking such review merely because he has previously represented the division as counsel. Providence Gas Co. v. Burke, 419 A.2d 263, 1980 R.I. LEXIS 1797 (1980).

Retention of Counsel.

In the event of a challenge by statutory petition for certiorari of a commission decision, brought by the attorney general as representative of the state or the citizens of the state, the division may retain its own counsel in order to defend the commission’s decision or it may rely upon the adversary party to the proceedings to defend the decision. Providence Gas Co. v. Burke, 419 P.2d 263 (R.I. 1980).

Review of Commission Decision.

In the event that following a commission decision the attorney general, having previously represented the division, desires to seek review, he should do so in his own name rather than on behalf of the division. Providence Gas Co. v. Burke, 419 A.2d 263, 1980 R.I. LEXIS 1797 (1980).

Local commission failed to show that the PUC exceeded its authority, acted illegally, arbitrarily, or unreasonably ordered retention and funding of an independent auditor; the auditor could not invade the prerogative of the local commission. In re Narragansett Bay Comm'n Gen. Rate Filing, 808 A.2d 631, 2002 R.I. LEXIS 187 (2002).

39-1-20. Assistance for investigations and hearings.

Whenever the commission or the division shall conduct an investigation or hearing upon a proposal by a public utility to increase its rates, tolls, or charges, or to issue stocks, bonds, notes, or other evidences of indebtedness, or to merge or consolidate with another company, it may employ legal counsel, official stenographers, and expert witnesses, and may designate disinterested persons free from bias, prejudice, and pecuniary interest in the matter concerned, to examine into and testify regarding the matters involved and all collateral issues at all hearings and in any appeal procedures until final determination in law has been had.

History of Section. P.L. 1969, ch. 240, § 1; P.L. 1973, ch. 199, § 1.

NOTES TO DECISIONS

Applicability.

This section does not empower the attorney general to provide staff counsel to the commission; otherwise there would be conflict of interest problems since pursuant to § 39-1-19 the division may require the attorney general to represent it. Providence Gas Co. v. Burman, 119 R.I. 78 , 376 A.2d 687, 1977 R.I. LEXIS 1874 (1977).

Representation by Attorney General.

Except when the interests of the division and the state or its citizens conflict, § 39-1-19 requires the attorney general to represent the division in hearings before the public utilities commission and in appeals from the commission. Narragansett Elec. Co. v. Harsch, 117 R.I. 395 , 368 A.2d 1194, 1977 R.I. LEXIS 1707 (1977).

In any case in the discretion of the administrator, the attorney general may be retained in order to represent the division in proceedings before the public utilities commission. In the event that the administrator foresees that there will be a conflict between the division and the attorney general, he may, of course, retain independent counsel to represent the division. Providence Gas Co. v. Burke, 419 A.2d 263, 1980 R.I. LEXIS 1797 (1980).

In the event of a petition for review of a commission decision, brought by a utility that is aggrieved by such decision, the division may in the discretion of its administrator continue to seek the services of the attorney general or may engage independent counsel in the event of a conflict of positions between the division and the attorney general. Providence Gas Co. v. Burke, 419 A.2d 263, 1980 R.I. LEXIS 1797 (1980).

39-1-21. Access to premises of utility.

The commissioners, the attorney general, and the agents of the division, as provided in §§ 39-1-15 and 39-1-20 , while engaged in the performance of their duties, may, at all reasonable times, enter any premises, buildings, cars, plant, or equipment, or other places belonging to, or controlled by, any public utility, communications carrier, or contract carrier, and inspect the same or any part thereof, and any person obstructing, hindering, or in any way causing to be obstructed or hindered, any commissioner or the attorney general or any agent of the division, in the performance of his or her duties, or who shall refuse to permit any commissioner, the attorney general, or any agent of the division entrance into any premises, building, cars, plant, or equipment, or other places belonging to or controlled by any public utility, communications carrier, or contract carrier, in the performance of his or her duties as such, shall be deemed guilty of a misdemeanor and fined not more than five hundred dollars ($500).

History of Section. P.L. 1912, ch. 795, § 14; G.L. 1923, ch. 253, § 14; G.L. 1938, ch. 122, § 11; G.L. 1956, § 39-1-13 ; G.L. 1956, § 39-1-21 ; P.L. 1969, ch. 240, § 1.

39-1-22. False returns.

A company subject to the supervision of the commission or division that furnishes it with a sworn or affirmed report, return, or statement, that the company knows or should know contains false figures or information regarding any material matter lawfully required of it, and any company that fails within a reasonable time to obey a final order of the commission or division, shall be fined not more than twenty thousand dollars ($20,000).

History of Section. P.L. 1969, ch. 240, § 1; P.L. 1973, ch. 199, § 1.

39-1-23. Administrative expenses — Assessment against utilities.

  1. The administrator shall aggregate the expenses of the division, including expenses incurred by the attorney general pursuant to § 39-1-19 and expenses incurred by the commission, for each upcoming fiscal year and shall apportion and assess these expenses among the state’s regulated utilities based upon approved budgets. When submitting the budget, the budget office shall clearly indicate the revenues from assessments. Included within this prospective assessment, shall be those expenses expected to be incurred by the attorney general pursuant to § 39-1-19 for the upcoming fiscal year. The expenses anticipated by the attorney general and the commission for each upcoming fiscal year shall be communicated to the administrator within thirty (30) days of request by the administrator. The administrator shall thereupon apportion and assess one hundred percent (100%) of such expenses among the several public utility companies and common carriers located in this state in the proportion that the gross intrastate-utility-operating revenues of each public utility company and common carrier shall bear to the total, gross intrastate-utility-operating revenues for the last preceding fiscal year of all public utility companies and common carriers; provided, however, that any public utility or common carrier, whose gross intrastate revenues in any fiscal year as reported to the administrator do not exceed one hundred thousand dollars ($100,000), shall not be subject to the assessment under the provisions hereof; and, provided further, that all motor carriers subject to the provisions of chapters 12 and 14 of this title shall not be subject to the assessment under the provisions hereof. The sum so apportioned and assessed shall be in addition to any taxes payable to the state under any other provision of law. The assessments shall be divided between the commission and the division based upon the approved budgets.
  2. The administrator shall apply any budgetary balance or shortfalls remaining from a prior, annual assessment toward the next upcoming fiscal-year assessment to the division or the commission as appropriate.
  3. Upon collection from the several public utility companies and common carriers operating in this state, assessments and any state appropriations shall be deposited in an account to be known as the public utilities commission funding account. This fund shall be a restricted-receipt account and shall be kept by the general treasurer separately and shall be paid out by the general treasurer only upon receipt of properly authenticated vouchers signed by the administrator, or his or her designee, for the division’s share of the account. The same procedure shall be followed for the commission, except that such vouchers shall be signed by the commission chairperson, or his or her designee. The general treasurer shall provide for separate accounting of the division and commission budget and expenses. The moneys in the public-utilities fund shall be expended by the administrator or the commission, as appropriate for meeting the expenses of the operation of the commission, the division, and those expenses incurred by the attorney general, pursuant to § 39-1-19 .
  4. The legislature may appropriate from the general funds such sums as are necessary for the regulation of public utilities.

History of Section. G.L. 1938, ch. 122, § 63; P.L. 1955, ch. 3436, § 1; G.L. 1956, § 39-1-14 ; G.L. 1956, § 39-1-23 ; P.L. 1969, ch. 240, § 1; P.L. 1977, ch. 236, § 1; P.L. 1983, ch. 167, art. 10, § 1; P.L. 1987, ch. 22, § 1; P.L. 1990, ch. 65, art. 40, § 1; P.L. 1991, ch. 44, art. 9, § 1; P.L. 1993, ch. 138, art. 55, § 1; P.L. 1996, ch. 316, § 1; P.L. 1997, ch. 326, § 103; P.L. 2016, ch. 443, § 1; P.L. 2016, ch. 444, § 1.

39-1-23.1. Motor carrier enforcement program created — Recovery of expenses through a percentage of fines collected from motor carriers.

  1. The administrator has been charged under this title with the responsibility of promoting adequate, economical, and efficient service by motor carriers and reasonable charges therefore without unjust discriminations, undue preferences, or advantages, or unfair or destructive competitive practices. This legislative charge further requires that the administrator improve the relations between, and coordinate transportation by, and the regulations between all modes of transportation provided by the various classes of motor carriers; develop and preserve a highway transportation system properly adapted to the needs of the commerce of the state; and promote safety upon its publicly used highways in the interest of its citizens.
  2. It is hereby declared that in order to enforce the statutes, rules, and regulations under which the administrator carries out his or her efforts to fulfill the mandates provided in subsection (a), appropriations shall be provided, pursuant to the assessment provision contained in § 39-1-23 , for the purposes of providing the administrator with the financial means to maintain an enforcement presence in the transportation industry. The appropriations shall be used by the administrator to create and maintain a field enforcement staff of at least two (2) inspector-auditors whose sole responsibilities shall be to promote and compel compliance with all applicable motor carrier related statutes, rules, and regulations. In addition to compensation for inspector-auditors, the motor carrier enforcement appropriations may be used to purchase any materials or equipment necessary for this field enforcement staff and any training or educational programs germane to its regulatory functions.

History of Section. P.L. 1992, ch. 133, art. 34, § 3; P.L. 1995, ch. 370, art. 40, § 116; P.L. 1997, ch. 326, § 103; P.L. 2008, ch. 100, art. 29, § 1.

39-1-24. Certification, collection, and deposit of assessments.

On or before the first day of August in each year, the administrator shall certify to the state controller the amount of the assessment made pursuant to § 39-1-23 and the name and address of each company against whom the assessment is made. Each company shall pay the administrator the amount assessed against it within thirty (30) days from the receipt of the assessment with interest at the rate of six percent (6%) per annum if unpaid at the due date. The administrator shall deposit all payments with the general treasurer. The amount so deposited shall be credited to the general fund of the state and accounted for as expenses recovered from public utility companies and common carriers.

History of Section. G.L. 1938, ch. 122, § 63; P.L. 1955, ch. 3436, § 1; G.L. 1956, § 39-1-15 ; G.L. 1956, § 39-1-24 ; P.L. 1969, ch. 240, § 1.

39-1-25. Objection to assessments.

Each company shall pay to the administrator the amount assessed against it or shall file with the commission its objections in writing setting out the grounds upon which it claims that the assessment is excessive, erroneous, unlawful, or invalid. The commission shall, within thirty (30) days from the receipt of the objection, hold a hearing and issue an order in accordance with its findings.

History of Section. G.L. 1938, ch. 122, § 63; P.L. 1955, ch. 3436, § 1; G.L. 1956, § 39-1-16 ; G.L. 1956, § 39-1-25 ; P.L. 1969, ch. 240, § 1.

39-1-26. Public utilities reserve fund created — Appropriations — Recovery of expenses from utility companies.

  1. There is hereby created a fund to be known as the public utilities reserve account, an account within the public utilities commission in the general fund. Such account, hereinafter referred to as the “fund,” shall be used for the purpose of providing the financial means for the commission and division to purchase materials, and to employ on a contract or other basis, legal counsel, official stenographers, engineers, accountants, economists, and other expert witnesses, and for other necessary expenses of the commission and division in investigations and hearings related to applications and filings made by public utilities, or commission- or division-initiated investigations into utility operating practices, or related appeals to state or federal courts or in relevant regulatory matters before federal agencies. The general assembly shall annually appropriate to the fund a sum equal to twenty-five one thousandths of one percent (.00025%) of the gross, annual operating revenues of gas, electric, and telephone companies attributable to their conduct of intrastate operations in this state during the year next preceding; provided, however, that if at June 30, in any year the balance in the fund shall be in excess of one hundred thousand dollars ($100,000), the amount of the excess shall forthwith be transferred to the general fund of the state. Prebilled revenue shall be excluded from an excess balance to be transferred to the general fund. The state controller is authorized and directed to draw his or her orders upon the general treasurer for the payment from the fund of such sums as may be required from time to time upon receipt by him or her of proper vouchers approved by the administrator.
  2. The public utility making an application or filing to the commission or division, or subject to a commission- or division-initiated investigation, or any public utility distributing electricity or gas whose retail rates would be affected by a proceeding before an agency of the federal government or a federal court, shall be charged with and shall pay a portion of the expenses reasonably so incurred by the commission and by the division for the purchase of materials and for the employment of legal counsel, official stenographers, engineers, accountants, and expert witnesses, and for travel and other necessary expenses as are reasonably attributable to the investigation or the hearing of the proposal by the commission and the division, or to the administrator’s representation of the state before federal or state courts or an agency of the federal government. The administrator or the commission chairperson, as appropriate, shall ascertain the expenses and shall determine the amount to be paid by the public utility company or companies, and bills shall be rendered therefor either at the conclusion of the investigation or hearing, or from time to time during its progress, and the amount of each bill so rendered shall be paid by the public utility to the administrator or the commission, as appropriate, within thirty (30) days from the date of its rendition unless, within the thirty-day (30) time period, the public utility so billed shall request an opportunity to be heard by the commission as to the amount thereof. The commission shall comply with any such request. Any amount of the bill not paid within thirty (30) days from the date of service of the determination upon the hearing, or, if none shall be requested, within thirty (30) days from the date of rendition of the bill, shall draw interest at the rate of twelve percent (12%) per annum. At the discretion of the administrator, or the commission chairperson, as appropriate, utility companies may be prebilled for contractual services utilized by the commission or division. Any revenue received from public utilities not expended upon the completion of the case will be promptly reimbursed to the utility company. The total amount that may be charged to any public utility under authority of this section for proceedings before the commission or division or in related appeals before state or federal courts in any calendar year shall not exceed seven hundred and fifty thousand dollars ($750,000), provided that any indirect cost recovery obligations pursuant to § 35-4-27 shall constitute a separate and additional assessment to public utilities to be added to the foregoing expense assessment limit; in addition, the total amount that may be charged against any public utility under authority of this section for the administrator’s representation of the state before agencies of the federal government in any calendar year shall not exceed two hundred and fifty thousand dollars ($250,000). All moneys collected by the administrator or the commission pursuant to this section shall be paid by him or her monthly to the general treasurer to be added to the public utilities reserve fund.
  3. The division of public utilities and carriers shall adopt by regulation, a fee schedule for all telecommunications filings, including initial applications and annual registrations, by telecommunications providers that are not otherwise subject to the provisions of subsection (a) or (b) of this section. The money assessed and paid shall be paid into the general fund and shall not be a part of the public utilities reserve fund.
  4. The general assembly shall annually appropriate such sums as it may deem necessary for the salaries of the commissioners and their expenses incurred in the performance of their duties, and for the operations of the commission and the division and payment of such office expenses and assistance as from time to time may be required. The state controller is authorized and directed to draw his or her orders upon the general treasurer for the payment of such sum, or so much thereof, as may be required from time to time upon receipt by him or her of vouchers approved by the administrator or his or her authorized agent.

History of Section. P.L. 1969, ch. 240, § 1; P.L. 1973, ch. 199, § 1; P.L. 1980, ch. 73, § 1; P.L. 1981, ch. 259, § 1; P.L. 1984, ch. 210, § 1; P.L. 1987, ch. 22, § 1; P.L. 1991, ch. 44, art. 76, § 6; P.L. 1993, ch. 138, art. 55, § 1; P.L. 1995, ch. 316, § 1; P.L. 1995, ch. 330, § 1; P.L. 1996, ch. 316, § 1; P.L. 2001, ch. 229, § 1; P.L. 2001, ch. 397, § 1; P.L. 2009, ch. 68, art. 15, § 1; P.L. 2017, ch. 82, § 1; P.L. 2017, ch. 90, § 1.

39-1-27. Electric distribution companies required to file restructuring plans.

  1. Each electric distribution company shall file with the commission a plan for transferring ownership of generation facilities into a separate affiliate of the electric distribution company. The transmission facilities owned by the electric distribution company also may be transferred to an affiliated electric transmission company at a price that shall equal the book value of the transmission facilities on the electric distribution company’s accounts net of depreciation and deferred taxes as the date of transfer, but such a transfer is not required. The generation plant, equipment, and facilities owned by an electric distribution company shall be transferred to an affiliate that is a nonregulated power producer at a price that shall equal the book value of the generation plant, equipment, and facilities on the electric distribution company’s accounts net of depreciation and deferred taxes as of the date of the transfer. Consistent with the schedule for implementing retail access in § 39-1-27.3 , each electric transmission company shall file tariffs with the Federal Energy Regulatory Commission (FERC) and electric-distribution companies shall file tariffs with the commission. The tariffs will provide the terms, conditions, and rates for nondiscriminatory access to transmission and distribution facilities to wholesale and retail customers and to nonregulated power producers. The tariffs shall: (1) Conform to the standards, policies, and requirements of the Federal Energy Regulatory Commission or the commission as appropriate with respect to nondiscriminatory access to transmission and distribution services; (2) Fulfill such standards with respect to both transmission and distribution services for the benefit of both wholesale and retail customers and their suppliers; and (3) Provide retail access in accordance with the schedule set forth in § 39-1-27.3 . For purposes of this section, “nondiscriminatory access” means access to transmission and distribution services on rates, terms, and conditions found to be reasonable by the FERC or the commission as appropriate and applied consistently to all customers in a rate class regardless of their supplier. When establishing terms and conditions for distribution service, the commission shall implement standards, policies, and requirements consistent with those established by the Federal Energy Regulatory Commission for transmission service unless it determines that alternative terms and conditions are in the public interest.
  2. The commission shall review the plan within six (6) months of filing and if the plan is in compliance with chapter 3 of this title, shall authorize the property transfers, securities issuances, and affiliate transactions pursuant to this title and shall grant all necessary regulatory approvals. All existing state and local rights, authorizations, and approvals, including but not limited to, permits, licenses, locations, indentures, leases, orders, or similar rights associated with the ownership and operation of plant and equipment, shall be deemed transferred with the associated plant and equipment upon the commission’s authorization of the transfer effective as of the date of transfer. Notwithstanding any provisions of this section, if the electric distribution company’s wholesale power supplier chooses to transfer its generation assets to a nonaffiliate of the electric distribution company for purposes of carrying out the market valuation required by § 39-1-27.4(g) , and such transfer to a nonaffiliate is specified in the electric distribution company’s restructuring plan filed with the commission pursuant to subsection (a) of this section, the transfer of the electric distribution company’s interest in the generation facilities may be made directly to the nonaffiliate. In the case of such a transfer directly to a nonaffiliate, all of the state and local rights, authorizations, and approvals, including those enumerated above, shall be deemed transferred with the associated plant and equipment upon the commission’s authorization of the transfer effective as of the date of the transfer.
  3. The electric distribution company shall implement the corporate reorganizations and property transfers specified in such restructuring plan; terminate its all-requirements contract with its wholesale power supplier on the terms set forth in § 39-1-27.4 ; and provide retail access for all customers in Rhode Island with a standard offer, as set forth in § 39-1-27.3 , no later than three (3) months after retail access is available to forty percent (40%) or more of the kilowatt-hour sales in New England. The commission may extend this time if it determines that additional time is necessary to implement the transactions on reasonable terms and in accordance with a reasonable schedule; provided, however, that nothing in this section shall be construed to limit the effect of § 39-1-27.3 or permit the commission to unduly discriminate in providing retail access among or within rate classes.
  4. Following the complete implementation of the restructuring plans, electric distribution companies shall be prohibited from selling electricity at retail and from owning, operating, or controlling generating facilities, although such facilities may be owned by affiliates of electric distribution companies. For purposes of this subsection, providing the standard-offer service and last-resort power supply in accordance with subsections (d) and (f) of § 39-1-27.3 shall not be construed as selling electricity at retail.
  5. Following the termination of the electric distribution company’s contracts with its wholesale power supplier, the wholesale power supplier shall become a nonregulated power producer, and shall be free, subject to the requirements of the standard offer set forth in § 39-1-27.3(e) and retail electric licensing commission plan requirements pursuant to § 39-1-27.1 , to sell electricity generated from each of its facilities on either the wholesale or retail markets at market prices, either directly or through an affiliate, which shall also become a nonregulated power producer. The former wholesale power supplier and its affiliates shall be free to apply to become exempt wholesale generators pursuant to § 32 of the Public Utility Holding Company Act of 1935, 15 U.S.C. § 79z-5a [repealed], and other federal law, rules, and regulations, and each and every generating facility of the former wholesale power supplier shall become an eligible facility pursuant to that statute. Accordingly, the legislature hereby finds and declares that the division has sufficient regulatory authority, resources, access to books and records to exercise its duties; and that the full participation of former wholesale power suppliers and affiliated nonregulated power producers in the market and the designation of each of the former wholesale power supplier’s facilities as eligible facilities will benefit consumers; is consistent with state law; will not provide any unfair competitive advantage by virtue of their status as a former wholesale power supplier or as affiliates of electric distribution companies; and is in the public interest.
  6. Although reducing air emissions from power plants is a goal of electricity industry restructuring, power plants in Rhode Island already have low emissions relative to their counterparts in other states. For this reason, it is unnecessary for the restructuring plans required by this section to address in-state air emission reductions. However, to the extent a wholesale power supplier receiving contract termination fees pursuant to § 39-1-27.4(b)(4) owns and operates as of December 31, 1995, fossil-fired generation in another state that does not meet air emission standards applicable as of that date to new electric-generating facilities in that state, the wholesale power suppliers shall cooperate with the appropriate environmental officials in the state or states where the generating facilities are located to develop a plan for reducing the emissions of nitrogen oxides, sulfur dioxide, and particulate matter from the plants on an overall basis through retirements, replacements, controls, or offsets, or any combination of the above, toward the air emissions standards applicable to new electric-generating facilities in effect in the state or states where the plants are located as of January 1, 1996. The plans shall be implemented in connection with electric-industry restructuring in the state or states where the generating facilities are located.
  7. An electric distribution company, whether public, quasi-municipal, or investor owned, that as of January 1, 1996, did not purchase power at wholesale from a wholesale power supplier under an all-requirements contract, shall include proposals for recovering transition costs consistent with the elements that would be comparable in nature to the elements included in termination fees pursuant to § 39-1-27.4(b) through (g) and for providing a standard offer consistent with requirements of § 39-1-27.3(d) in its plan filed with the commission pursuant to this section. The filing by an electric distribution company that is a quasi-municipal corporation shall also address any unique circumstances affecting the electric distribution company, including special contract requirements or charter restrictions and the conditions that the quasi-municipal corporation must satisfy in order to participate in retail competition. In reviewing the filing and determining the appropriate level of transition cost recovery, the commission shall apply standards consistent with those contained in § 39-1-27.4(b) through (g) and with this subsection. The commission shall be authorized to take any action or to grant any approval necessary to maintain hydroelectric power purchases from the Niagara and St. Lawrence power projects by quasi-municipal corporations. Notwithstanding any other provision of this section, quasi-municipal electric distribution companies that purchase hydroelectric power from the Niagara and St. Lawrence power projects shall be authorized to continue to resell that power to residential customers within their service territories. After notice and public hearing, the commission may exempt electric distribution companies subject to this subsection from: (1) The requirement to transfer ownership of generation and transmission facilities to affiliated companies pursuant to subsection (a) of this section; and (2) The prohibition against selling electricity at retail pursuant to subsection (d) of this section with respect to sales within the service territory of the electric distribution company, if it determines that the exemptions are in the public interest.
  8. With the exception of the requirements of the standard offer set forth in § 39-1-27.3(e) and (f) and retail electric licensing commission plan requirements pursuant to § 39-1-27.1 , nothing in this section shall be construed or interpreted to constrain the application of antitrust laws to nonregulated power producers, whether affiliated or not with an electric distribution company.

History of Section. P.L. 1996, ch. 316, § 1; P.L. 1997, ch. 357, § 1.

Compiler’s Notes.

Section 39-1-27.3 was amended in 2002 by P.L. 2002, ch. 144, § 1, and it appears that § 39-1-27.3(d) , referred to in this section, was redesignated by that amendment as 39-1-27.3 (b); 39-1-27.3(f), referred to in this section, was redesignated as 39-1-27.3(c) by that amendment; and 39-1-27.3(e), referred to in this section, was deleted by that amendment.

The Retail Electric Licensing Commission, referred to in this section, was established in 1996 by § 39-1-27.2 , which provided that the commission would expire April 30, 1997. Section 39-1-27.2 was repealed by P.L. 2006, ch. 216, § 10.

39-1-27.1. Retail electric licensing commission plan requirements and nonregulated power producer registration requirements.

  1. The retail electric licensing commission shall, by January 1, 1997, submit a plan to the legislature that shall include, but not be limited to, the following:
    1. A recommendation for taxing and/or assessing electric distribution companies, electric transmission companies, and nonregulated power producers;
    2. Recommendations regarding changes to the regional power pool that would facilitate the creation of an independent system operator and voluntary power exchange; and
    3. Proposals for consumer protections, access to books and records, and other requirements the retail electric licensing commission determines to be reasonable, necessary, and in the public interest.
    1. On or before January 1, 1997, the public utilities commission shall establish regulations applicable to nonregulated power producers that are selling electricity in this state that are necessary to meet (directly or through contract) the operating and reliability standards of the regional power pool.
    2. In addition, the public utilities commission shall participate in all proceedings before the Federal Energy Regulatory Commission with respect to the modification and/or termination of wholesale all requirements contracts in place as of January 1, 1996, between electric-distribution companies operating in this state and their affiliated power suppliers. The purpose of this participation is to ensure that termination fees payable by ultimate customers in this state are determined in accordance with the provisions of § 39-1-27.4 . To facilitate this participation, the public utilities commission is authorized to assess electric-distribution companies under its jurisdiction for its reasonable expenses incurred in connection with its participation in those proceedings, up to a maximum of one hundred thousand dollars ($100,000) per year, which assessments shall be in addition to all other assessments authorized by this title.
    3. On January 1, 1998, and annually for the next four (4) years thereafter, the public utilities commission shall transmit to the governor, the speaker of the house, and the president of the senate, a report detailing: developments in the competitive power supply market in this state; estimated savings realized by customers as a result of the introduction of retail competition in the power supply market; progress towards implementation of a regional transmission agreement for New England and other reforms implemented by the regional power pool; and the status of electric industry restructuring activities in the other New England states and any recommendations for statutory changes.
  2. All nonregulated power producers seeking to engage in the retail sale of electricity in this state must file with the division of public utilities and carriers a notarized registration application that includes the information identified below and any additional information required by the division of public utilities and carriers pursuant to regulations issued to protect the public interest in connection with the registration of entities seeking to sell electricity at retail:
    1. Legal name;
    2. Business address;
    3. The name of the state where organized; the date of organization; a copy of the articles of incorporation, association, partnership agreement, or other similar document regarding legal organization;
    4. Name and business address of all officers and directors, partners, or other similar officials;
    5. Name, title, and telephone number of customer-service contact person;
    6. Name, title, and telephone number of regulatory contact person;
    7. Name, title, and address of registered agent for service of process;
    8. Brief description of the nature of business being conducted; and
    9. Evidence of financial soundness, except those nonregulated power producers that may be obligated entities under § 39-26-2(17) shall provide security such as a surety bond or other financial instrument showing evidence of liquid funds, such as a certificate of deposit, an irrevocable letter of credit, a line of credit, a loan, or guarantees in an amount specified by the division, pursuant to rules and regulations promulgated by the division on or before February 1, 2017, provided that the amount be not less than twenty-five thousand dollars ($25,000), nor more than five hundred thousand dollars ($500,000). The financial instrument shall name the public utilities commission and division of public utilities and carriers as obligees. Financial security shall be reviewed each year at the time a nonregulated power producer makes its annual filing. The financial security shall be available to satisfy penalties assessed by the division for violations of any consumer-protection rules or laws related to nonregulated power producers; refunds ordered by the division; or failure to comply with the provisions of chapter 26 of this title, as determined by the public utilities commission. Payments made pursuant to this subsection for violation of the provisions of § 39-26-4 shall be forfeited, and shall be remitted to the renewable energy development fund established in § 39-26-7 , or any successor funds, and all other forfeitures will be remitted to the state’s general fund.
  3. Copies of all filings pursuant to subsection (c) shall be served upon the commission and all electric distribution companies. Updated information shall be filed within ten (10) days of any change to the information included in a registration application, as filed or previously updated. Registration applications filed pursuant to subsection (c) shall become effective thirty (30) days after filing with the division, unless rejected during the thirty-day (30) period. If the division should reject a registration application, it shall specify the applicable reasons in writing and, if practicable, identify alternative ways to overcome any deficiencies. After an opportunity of a hearing, the division may rescind a nonregulated power producer’s registration for cause. Nonregulated power producers shall be authorized to do business in this state after their registration becomes effective and while it remains in good standing.
  4. A filing fee of one hundred dollars ($100) shall accompany all registration applications filed pursuant to subsection (c). Nonregulated power producers shall thereafter renew their registrations with the division on an annual basis. Applications for renewal shall be filed before the close of business on December 31 of each calendar year. Applications for renewal shall specify any changes in previously filed registration information. A filing fee of one hundred dollars ($100) shall accompany all applications for renewal of nonregulated power producer status.

History of Section. P.L. 1996, ch. 316, § 1; P.L. 2001, ch. 258, § 1; P.L. 2001, ch. 398, § 1; P.L. 2016, ch. 483, § 1; P.L. 2016, ch. 497, § 1; P.L. 2019, ch. 274, § 1; P.L. 2019, ch. 281, § 1.

Compiler’s Notes.

The Retail Electric Licensing Commission, referred to in this section, was established in 1996 by § 39-1-27.2 , which provided that the commission would expire April 30, 1997. Section 39-1-27.2 was repealed by P.L. 2006, ch. 216, § 10.

39-1-27.2. [Repealed.]

History of Section. P.L. 1996, ch. 315, § 1; Repealed by P.L. 2006, ch. 216, § 10, effective July 3, 2006.

Compiler’s Notes.

Former § 39-1-27.2 concerned the retail electric licensing commission.

39-1-27.3. Electric distribution companies required to provide retail access, standard offer and last-resort service.

  1. To promote economic development and the creation and preservation of employment opportunities within the state, each electric distribution company, except Pascoag Utility District, a quasi-municipal corporation, district, and subdivision of the state (“electric distribution company”), shall offer retail access from nonregulated power producers to all customers.
  2. Through year 2009, and effective July 1, 2007, through year 2020, each electric distribution company shall arrange for a standard power-supply offer (“standard offer”) to customers that have not elected to enter into power-supply arrangements with other nonregulated power suppliers. The rates that are charged by the electric distribution company to customers for standard-offer service shall be approved by the commission and shall be designed to recover the electric distribution company’s costs and no more than the electric distribution company’s costs; provided, that the commission may establish and/or implement a rate that averages the costs over periods of time. The electric distribution company shall not be entitled to recover any profit margin on the sale of standard-offer power, except with approval of the commission as may be necessary to implement, fairly and effectively, system reliability and least-cost procurement. The electric distribution company will be entitled to recover its costs incurred from providing the standard offer arising out of: (1) Wholesale standard-offer supply agreements with power suppliers in effect prior to January 1, 2002; (2) Power-supply arrangements that are approved by the commission after January 1, 2002; (3) Power-supply arrangements made pursuant to §§ 39-1-27.3.1 and 39-1-27.8 ; and (4) Any other power-supply-related arrangements prudently made after January 1, 2002, to provide standard-offer supply or to mitigate standard-offer supply costs, including costs for system reliability, procurement, and least-cost procurement, as provided for in § 39-1-27.7 . Subject to commission approval, the electric distribution company may enter into financial contracts designed to hedge fuel-related or other variable costs associated with power-supply arrangements and the costs of any such financial contracts shall be recoverable in standard-offer rates. The electric distribution company’s standard-offer revenues and its standard-offer costs shall be accounted for and reconciled with interest at least annually. Except as otherwise may be directed by the commission in order to accomplish purposes established by law, any over recoveries shall be refunded to customers in a manner directed by the commission, and any under recoveries shall be recovered by the electric distribution company through a uniform adjustment factor approved by the commission. The commission shall have the discretion to apply such adjustment factor in any given instance to all customers or to such specific class of customers that the commission deems equitable under the circumstances provided that the distribution company recovers any under recovery in its entirety. Once a customer has elected to enter into a power-supply arrangement with a nonregulated power producer, the electric distribution company shall not be required to arrange for the standard offer to such customer except as provided in § 39-1-27.3.1 . No customer who initially elects the standard offer and then chooses an alternative supplier shall be required to pay any withdrawal fee or penalty to the provider of the standard offer unless such a penalty or withdrawal fee was agreed to as part of a contract; however, no residential customer shall be required to pay a penalty or withdrawal fee for choosing an alternative supplier. Nothing in this subsection shall be construed to restrict the right of any nonregulated power producer to offer to sell power to customers at a price comparable to that of the standard offer specified pursuant to this subsection. The electric distribution company may not terminate an existing standard-offer wholesale supply agreement without the written consent of the division.
  3. In recognition that electricity is an essential service, each electric distribution company shall arrange for a last-resort power supply for customers who have left the standard offer for any reason and are not otherwise receiving electric service from nonregulated power producers. The electric distribution company shall procure last-resort service supply from wholesale power suppliers. Prior to acquiring last-resort supply, the electric distribution company will file with the commission a supply acquisition plan or plans that include the acquisition procedure, the pricing options being sought, and a proposed term of service for which last-resort service will be acquired. The term of service may be short- or long-term and acquisitions may occur from time to time and for more than one supplier for segments of last-resort service load over different terms, if appropriate. All the components of the acquisition plans, however, shall be subject to commission review and approval. Once an acquisition plan is approved by the commission, the electric distribution company shall be authorized to acquire last-resort service supply consistent with the approved acquisition plan and recover its costs incurred from providing last-resort service pursuant to the approved acquisition plan. The commission may periodically review the acquisition plan to determine whether it should be prospectively modified due to changed market conditions. The commission shall have the authority and discretion to approve special tariff conditions and rates proposed by the electric distribution company that the commission finds are in the public interest, including without limitation: (1) Short- or long-term optional service at different rates; (2) Term commitments or notice provisions before individual customers leave last-resort service; (3) Last-resort service rates for residential or any other special class of customers that are different than the rates for other last-resort customers; and/or (4) Last-resort service rates that are designed to encourage any class of customers to return to the market. The electric distribution company’s last-resort service revenues and its last-resort service costs shall be accounted for and reconciled with interest at least annually. Any over recoveries shall be refunded and any under recoveries shall be recovered by the electric distribution company through a uniform adjustment factor approved by the commission. The commission shall have the discretion to apply such adjustment factor in any given instance to all customers or to such specific class of customers that the commission deems equitable under the circumstances provided that the distribution company recovers any under recovery in its entirety. Nothing in this section shall be construed to prohibit an electric distribution company from terminating service provided hereunder in accordance with commission rules and regulations in the event of nonpayment of this service. The commission may promulgate regulations to implement this section including the terms and conditions upon which last-resort service is offered and provided to customers.
  4. If a customer being served by a nonregulated power producer pays any taxes assessed for electric service to the electric distribution company and the electric distribution company forwards such tax payment for the power portion of the bill to a nonregulated power producer for payment by the nonregulated power producer to the state, neither the customer nor the electric distribution company shall be liable for such taxes forwarded if the nonregulated power producer fails to remit such taxes to the state for any reason.

History of Section. P.L. 1996, ch. 316, § 1; P.L. 1997, ch. 326, § 103; P.L. 1997, ch. 357, § 1; P.L. 2002, ch. 144, § 1; P.L. 2006, ch. 236, § 5; P.L. 2006, ch. 237, § 5; P.L. 2015, ch. 77, § 1; P.L. 2015, ch. 90, § 1.

NOTES TO DECISIONS

Construction.

This provision merely requires the electric distribution company to solicit bids from nonregulated power products for last resort service (LRS), but does not attempt to establish a regulatory scheme for the rates that the electrical distribution company in turn may charge its customers for LRS. Energy Council v. PUC, 773 A.2d 853, 2001 R.I. LEXIS 159 (2001).

39-1-27.3.1. Option to return to standard offer.

  1. The commission may, notwithstanding the provisions of § 39-1-27.3 , allow customers no longer eligible for standard-offer service to return to standard-offer service, subject to the process set forth in this section. The process shall be as follows: The commission shall hold hearings to determine whether there is a sufficient presence of nonregulated power producers offering reasonably priced power-supply service to customers in Rhode Island. If the commission determines that these market conditions are not present, the commission shall direct the electric distribution company to prepare and file a plan that creates an option for customers to return to the standard offer, including terms and conditions for customers returning and the manner in which the power supply will be procured. This plan may include term commitments or notice provisions before nonresidential customers are permitted to leave standard-offer service once they return. The commission shall conduct a hearing to review the electric distribution company’s plan and issue an order approving the plan, including any modifications the commission deems appropriate.
  2. Once the plan is approved by the commission, the electric distribution company and the division shall jointly prepare a request for power-supply proposals (“RFP”) consistent with the commission’s order, develop reasonable bidder qualifications, issue the RFP, review the bids, and jointly select a winning bidder or bidders to supply power. If the electric distribution company and the division mutually agree that the bids are unreasonably high, they shall have the discretion to reject all bids and re-issue an RFP at a later date that they deem appropriate. If the electric distribution company and the division cannot agree on any matter, the dispute shall be submitted to the commission for resolution. Once the winning bidder or bidders are selected, a supply contract or contracts on terms reasonably acceptable to the distribution company and the division will be executed by the electric distribution company and no further regulatory approval shall be required. However, the results of the bidding process shall be filed with the commission.
  3. All of the costs associated with the new supply contract(s) will be recovered through standard-offer rates and the electric distribution company’s fully reconciling adjustment provision.
  4. The standard-offer rates for the residential customers returning to the standard offer shall be the same as the standard-offer rate paid by all other standard-offer customers. The standard-offer rates for the nonresidential customers returning to the standard offer shall be determined by the commission after the commission reviews the costs of the power supply resulting from the bid process. The rate for nonresidential customers returning to the standard offer may differ from those of other customers, if the commission deems the rate differential to be appropriate.
  5. Any customer returning to the standard offer may not enter into any agreement to use standard-offer service to arbitrage the market with any supplier while the customer is on the standard offer and it shall be unlawful for any nonregulated power producer to enter into such an agreement.
  6. Nothing in this section shall be construed to create a legally enforceable entitlement for any supplier to require the electric distribution company to select any particular bid and/or sign a contract with the supplier.
  7. The requirements set forth in this section shall not apply to Pascoag Fire District or Block Island Power Company.

History of Section. P.L. 2002, ch. 144, § 2.

39-1-27.4. Transition charges authorized.

  1. An electric distribution company that purchases power at wholesale from a wholesale power supplier under an all-requirements contract shall be authorized to execute an agreement terminating, in whole or in part, such all-requirements contracts on terms that require payment of a contract termination fee complying with the requirements in subsection (b) and notwithstanding any other provisions of this title, shall be allowed to recover the payment through a nonbypassable transition charge paid by all customers of the electric distribution company. Any nonregulated power producer may pay all or a part of its customers’ transition charges.
  2. The contract termination fee paid by the electric distribution company to its wholesale power supplier shall include the electric distribution company’s share of its wholesale supplier’s costs associated with the following:
    1. Regulatory assets related to the generation business that include costs for which recovery has been deferred to the future in accordance with prior rate cases or settlements approved by regulators, or consistent with regulatory precedent; regulatory assets of affiliated fuel suppliers; and transition obligations for post-retirement healthcare costs of the wholesale supplier; and
    2. Nuclear obligations including decommissioning costs and nuclear costs independent of operation. Transition costs attributable to nuclear decommissioning must be deposited in unit-specific decommissioning trust funds or returned to customers if not needed. Nuclear costs independent of operation shall mean estimated nuclear operation and maintenance expenses that would be incurred assuming the nuclear units were to permanently cease operating on December 31, 1997; and
    3. Above-market payments to power suppliers for purchased power contracts of the wholesale power supplier in place as of December 31, 1995, together with reasonable payments of the wholesale power supplier to buy out of these contracts or to reduce payments pursuant to them; and
    4. The net unrecovered commitments and capital costs of all generating plants owned directly or indirectly by the electric distribution company and its wholesale power supplier as of December 31, 1995, whether or not the generating plants are operating, including natural gas conversion costs and above-market pipeline demand charges. Except as provided above, no operation or maintenance expenses associated with existing fossil-fired or hydroelectric generating facilities may be included in contract termination fees to be recovered by electric distribution companies from customers through transition charges.
  3. Because of the uncertainty associated with the timing and amounts to be paid pursuant to subsections (b)(2) (with the exception of nuclear costs independent of operation) and (b)(3), the termination fee to the wholesale supplier and the related transition charge to the electric distribution company’s customers shall continue until these liabilities have been satisfied with an annual reconciliation of estimated to actual expenses. Because the items specified in subsections (b)(1) and (b)(4) can be determined with certainty or reasonably estimated and the nuclear costs independent of operation can be reasonably estimated, no annual reconciliation is necessary for these items. However, to moderate the rate impact of these items, recovery through the transition charge will be spread over the period from July 1, 1997, through December 31, 2009, with a return on the unamortized balance as specified in subsection (d); effective January 1, 2010, there shall be no allowance for these items in the transition charges billed by electric distribution companies.
  4. In recognition of the potential for a positive residual value of existing generating facilities at the conclusion of the amortization period in the year 2010, the return on equity allowed on the unamortized balance of subsections (b)(1) and (b)(4) paid to the wholesale supplier and recoverable from customers of the electric distribution company shall be limited to one percentage point plus the average rate of return on BBB-rated long-term utility bonds issued during the six-month (6) period July through December, 1996.
  5. Notwithstanding any other provisions of this section, other than subsection (g), for the period July 1, 1997, to December 31, 2000, the nonbypassable transition charge implemented by the electric distribution company shall recover an amount equal to two and eight-tenths of a cent (2.8¢) per kilowatt-hour transmitted or distributed. After the year 2000, the transition charge recoverable from customers shall be established by the commission in an amount sufficient to recover the costs authorized in this section with an adjustment for any over or under recoveries of the contract termination fees occurring during the period July 1, 1997, to December 31, 2000. The adjustment under this subsection shall be made in a manner the commission determines appropriate.
  6. Any wholesale power supplier receiving contract termination fees with respect to power-purchase contracts pursuant to subsection (b)(3) shall offer to sell, buy down, or assign to others, through either public bid or private negotiation, at least the portion of the contracts attributable to its affiliated electric distribution company. To the extent that bids received or terms negotiated would, on an expected value basis, lower the transition charges paid by ultimate customers in Rhode Island, the wholesaler power supplier shall use all reasonable means to consummate the sale, buydown, or assignment and upon completion shall promptly file appropriate adjustments to the contract termination fees in place at that time. To provide an incentive for wholesale power suppliers to obtain the best possible terms for any sale, buydown, or assignment, they shall be allowed to retain ten percent (10%) of the savings expected to be realized by customers as a result of the sale, buydown, or assignment. The amount of any incentive payment shall be fixed at the time of the sale, buydown, or assignment based on estimated data and recovered in equal payments over the remaining term of the related power-purchase contract with appropriate adjustments for the time value of money.
  7. Every wholesale power supplier receiving contract termination fees pursuant to this section shall, subject to receipt of all necessary regulatory approvals, subject its electric-generating facilities, other than nuclear units or entitlements, as of January 1, 1996, to a form of market valuation through lease, sale, spin-off, or other method. The wholesale power supplier shall select the valuation methodology utilized which may be for all the generating facilities as a group, groups of generating facilities, or individual generating facilities. The wholesale power supplier shall meet its obligations under this section by leasing, selling, spinning off, or otherwise disposing of at least a fifteen percent (15%) interest in its electrical-generating facilities, other than nuclear units or entitlements; provided, however, if, pursuant to a requirement in connection with electric industry restructuring in another state prior to completion of the valuation pursuant to this subsection, a wholesale power supplier subject to this subsection is required to sell, spin-off, or otherwise dispose of more than a fifteen percent (15%) ownership interest in its electric-generating facilities, other than nuclear units or entitlements, then the same requirement, including related timing requirements, shall apply in the state and the market valuation resulting from fulfilling that requirement shall be used in determining the adjustment to the contract termination fee required by this subsection. Once the wholesale power supplier determines the percentage interest in its electrical-generating facilities that it will lease, sell, spin-off, or otherwise submit to market valuation to meet its obligation under this subsection, the company shall develop an implementation methodology to accomplish the lease, sale, spin-off, or other disposition of interest that is reasonably likely to approximate the market value of the generation assets. The implementation methodology shall be filed with the commission on or before July 1, 1997, for the commission to review and approve or reject no later than ninety (90) days after submittal. The commission shall approve the implementation methodology unless the commission finds, after public hearing, the methodology is not reasonably likely to approximate the market value of the company’s generating assets, taking into consideration the restrictions included in mortgage indentures and the need to satisfy the requirements of regulatory authorities outside the state. Promptly after commission approval of the implementation methodology, companies subject to this section must submit, for regulatory review, applications for the approvals necessary to commence such valuation. In addition, companies subject to this section shall also provide the commission with quarterly status reports on the progress of proceedings before other regulatory agencies associated with the implementation of this section. The valuation required by this section shall be completed within six (6) months after: (1) Retail access is available to forty percent (40%) or more of the kilowatt-hour sales in New England or (2) The receipt of all necessary regulatory approval for the valuation, whichever occurs later; provided, however, the commission may extend the deadline for completing the valuation by no more than six (6) months if it determines that an extension is in the public interest. Upon completion of the valuation, the wholesale power supplier, together with its affiliated electric distribution company shall file to adjust the contract termination fees in place at the time the valuation is complete as necessary to reflect the electric distribution company’s share of the market valuation in the transition charge paid by ultimate customers in Rhode Island. Any adjustment shall be net of the estimated revenue lost by the wholesale power supplier as a result of retail access during the period prior to completion of such valuation, the electric distribution company’s share of prudently incurred capital investments made after December 31, 1995, which were reasonably necessary to (i) Enable the electrical-generating facilities to operate safely and in compliance with applicable laws and regulations, (ii) Improve environmental performance or to increase fuel diversity or flexibility, with regulatory authorization, reasonable transaction costs, (including the cost of refinancing), and revenue lost as a result of the reduced return on equity specified in subsection (d). For purposes of this section, the unreduced return on equity that will be used prospectively and to value the revenue lost prior to the adjustment shall be the return on equity allowed to the wholesale power supplier’s affiliated electric distribution company as of December 31, 1995, and shall be included in the wholesale power supplier’s overall capital structure following the valuation. Any adjustment to the contract termination fee pursuant to this subsection shall be reflected in the termination fee otherwise calculated in accordance with subsection (b) as a uniform adjustment spread equally over the period beginning with the date the adjustment is made and ending December 31, 2009.

History of Section. P.L. 1996, ch. 316, § 1.

39-1-27.5. [Repealed.]

History of Section. P.L. 1996, ch. 316, § 1; Repealed by P.L. 2006, ch. 216, § 10, effective July 3, 2006.

Compiler’s Notes.

Former § 39-1-27.5 concerned performance-based rates for electric distribution companies.

39-1-27.6. Standards of conduct.

  1. An electric distribution company must conduct its business to conform with the standards of conduct specified in subsections (b) through (e).
    1. Except as provided in subsection (b)(2) and as authorized by the commission pursuant to § 39-1-27(g) , the employees of the electric distribution company engaged in distribution-system operations must function independently of its employees, or the employees of any of its affiliates, who are engaged in the business of a nonregulated power producer.
    2. Notwithstanding any other provisions in this section, in emergency circumstances affecting system reliability, electric distribution companies may take whatever steps are necessary to keep the system in operation. Electric distribution companies must report to the commission each emergency that resulted in any deviation from the standards of conduct, within twenty-four (24) hours of such deviation.
    1. Any employee of any affiliate of an electric distribution company who is engaged in the business of a nonregulated power producer is prohibited from: conducting distribution-system operations or reliability functions; and having access to the system control center or similar facilities used for distribution operations or reliability functions that differs in any way from the access available to other nonregulated power producers.
    2. Employees engaged in either an affiliated nonregulated power producer function or an electric distribution function are not precluded from transferring between such functions as long as such transfer is not used as a means to circumvent the standards of conduct of this section. Notices of any employee transfer to or from electric distribution company operation or reliability functions must be reported to the commission. The information to be reported must include: the name of the transferring employee; the respective titles held while performing each function (i.e., on behalf of the electric distribution company and the nonregulated power producer); and the effective date of the transfer.
    3. Any employee of any affiliate of an electric distribution company who is engaged in the nonregulated power producer function must not have preferential access to any information about the electric distribution company’s distribution system that is not available to all nonregulated power producers.
    4. An electric distribution company is responsible for ensuring that any employee of the electric distribution company may not disclose to employees of any affiliate engaged in a nonregulated power producer function any information concerning the distribution system of the electric distribution company or the distribution system of another (including information received from nonaffiliates or information about distribution-system operations, capability, price, curtailments, auxiliary services, and the like) through nonpublic communications that is not at the same time available to all nonregulated power producers without restriction. If an employee of the electric distribution company engaged in distribution-system operations or reliability functions discloses information in a manner contrary to the requirements of the standards of conduct, the electric distribution company must immediately report that information to the commission. An electric distribution company may not share any market information acquired from nonaffiliated, nonregulated power producers or developed in the course of responding to requests for distribution service with any employee of an affiliate engaged in a nonregulated power producer function.
    5. All employees of the electric distribution company must apply all tariff provisions in a fair and impartial manner that treats all customers (including those of an affiliated nonregulated power producer) in a nondiscriminatory manner. The electric distribution company may not offer a discount on purchases of distribution service where this discount is conditioned upon customers purchasing power from a nonregulated power producer that is affiliated with the electric distribution company, nor shall an electric distribution company give preferences of any type in the provision of distribution service for customers purchasing power supply from a nonregulated power producer that is affiliated with the electric distribution company.
  2. An electric distribution company must maintain its books of accounts and records separately from those of its affiliates and these must be available for commission inspection.
  3. The electric distribution company must maintain in a public place, and file with the commission, current written procedures implementing the standards of conduct in such detail as will enable customers and the commission to determine that the electric distribution company is in compliance with the requirements of this section.

History of Section. P.L. 1996, ch. 316, § 1; P.L. 2002, ch. 144, § 1.

39-1-27.7. System reliability and least-cost procurement.

  1. Least-cost procurement shall comprise system reliability and energy efficiency and conservation procurement, as provided for in this section, and supply procurement, as provided for in § 39-1-27.8 , as complementary but distinct activities that have as common purpose meeting electrical and natural gas energy needs in Rhode Island, in a manner that is optimally cost-effective, reliable, prudent, and environmentally responsible.
  2. The commission shall establish not later than June 1, 2008, standards for system reliability and energy efficiency and conservation procurement that shall include standards and guidelines for:
    1. System reliability procurement, including but not limited to:
      1. Procurement of energy supply from diverse sources, including, but not limited to, renewable energy resources as defined in chapter 26 of this title;
      2. Distributed generation, including, but not limited to, renewable energy resources and thermally leading combined heat and power systems, that is reliable and is cost-effective, with measurable, net system benefits;
      3. Demand response, including, but not limited to, distributed generation, back-up generation, and on-demand usage reduction, that shall be designed to facilitate electric customer participation in regional demand response programs, including those administered by the independent service operator of New England (“ISO-NE”), and/or are designed to provide local system reliability benefits through load control or using on-site generating capability;
      4. To effectuate the purposes of this division, the commission may establish standards and/or rates (A) For qualifying distributed generation, demand response, and renewable energy resources; (B) For net metering; (C) For back-up power and/or standby rates that reasonably facilitate the development of distributed generation; and (D) For such other matters as the commission may find necessary or appropriate.
    2. Least-cost procurement, which shall include procurement of energy efficiency and energy conservation measures that are prudent and reliable and when such measures are lower cost than acquisition of additional supply, including supply for periods of high demand.
  3. The standards and guidelines provided for by subsection (b) shall be subject to periodic review and as appropriate amendment by the commission, which review will be conducted not less frequently than every three (3) years after the adoption of the standards and guidelines.
  4. To implement the provisions of this section:
    1. The commissioner of the office of energy resources and the energy efficiency and resources management council, either jointly or separately, shall provide the commission findings and recommendations with regard to system reliability and energy efficiency and conservation procurement on or before March 1, 2008, and triennially on or before March 1 thereafter through March 1, 2028. The report shall be made public and be posted electronically on the website of the office of energy resources.
    2. The commission shall issue standards not later than June 1, 2008, with regard to plans for system reliability and energy efficiency and conservation procurement, which standards may be amended or revised by the commission as necessary and/or appropriate.
    3. The energy efficiency and resources management council shall prepare by July 15, 2008, a reliability and efficiency procurement opportunity report that shall identify opportunities to procure efficiency, distributed generation, demand response, and renewables and that shall be submitted to the electrical distribution company, the commission, the office of energy resources, and the joint committee on energy.
    4. Each electrical and natural gas distribution company shall submit to the commission on or before September 1, 2008, and triennially on or before September 1 thereafter through September 1, 2028, a plan for system reliability and energy efficiency and conservation procurement. In developing the plan, the distribution company may seek the advice of the commissioner and the council. The plan shall include measurable goals and target percentages for each energy resource, pursuant to standards established by the commission, including efficiency, distributed generation, demand response, combined heat and power, and renewables. The plan shall be made public and be posted electronically on the website of the office of energy resources, and shall also be submitted to the general assembly.
    5. The commission shall issue an order approving all energy-efficiency measures that are cost-effective and lower cost than acquisition of additional supply, with regard to the plan from the electrical and natural gas distribution company, and reviewed and approved by the energy efficiency and resources management council, and any related annual plans, and shall approve a fully reconciling funding mechanism to fund investments in all efficiency measures that are cost-effective and lower cost than acquisition of additional supply, not greater than sixty (60) days after it is filed with the commission.
      1. Each electrical and natural gas distribution company shall provide a status report, which shall be public, on the implementation of least-cost procurement on or before December 15, 2008, and on or before February 1, 2009, to the commission, the division, the commissioner of the office of energy resources, and the energy efficiency and resources management council which may provide the distribution company recommendations with regard to effective implementation of least-cost procurement. The report shall include the targets for each energy resource included in the order approving the plan and the achieved percentage for energy resource, including the achieved percentages for efficiency, distributed generation, demand response, combined heat and power, and renewables, as well as the current funding allocations for each eligible energy resource and the businesses and vendors in Rhode Island participating in the programs. The report shall be posted electronically on the website of the office of energy resources.
      2. Beginning on November 1, 2012, or before, each electric distribution company shall support the installation and investment in clean and efficient combined heat and power installations at commercial, institutional, municipal, and industrial facilities. This support shall be documented annually in the electric distribution company’s energy-efficiency program plans. In order to effectuate this provision, the energy efficiency and resource management council shall seek input from the public, the gas and electric distribution company, the commerce corporation, and commercial and industrial users, and make recommendations regarding services to support the development of combined heat and power installations in the electric distribution company’s annual and triennial energy-efficiency program plans.
      3. The energy-efficiency annual plan shall include, but not be limited to, a plan for identifying and recruiting qualified combined heat and power projects, incentive levels, contract terms and guidelines, and achievable megawatt targets for investments in combined heat and power systems. In the development of the plan, the energy efficiency and resource management council and the electric distribution company shall factor into the combined heat and power plan and program, the following criteria: (A) Economic development benefits in Rhode Island, including direct and indirect job creation and retention from investments in combined heat and power systems; (B) Energy and cost savings for customers; (C) Energy supply costs; (D) Greenhouse gas emissions standards and air quality benefits; and (E) System reliability benefits.
      4. The energy efficiency and resource management council shall conduct at least one public review meeting annually, to discuss and review the combined heat and power program, with at least seven (7) business days’ notice, prior to the electric and gas distribution utility submitting the plan to the commission. The commission shall evaluate the submitted combined heat and power program as part of the annual energy-efficiency plan. The commission shall issue an order approving the energy-efficiency plan and programs within sixty (60) days of the filing.
  5. If the commission shall determine that the implementation of system reliability and energy efficiency and conservation procurement has caused, or is likely to cause, under or over-recovery of overhead and fixed costs of the company implementing the procurement, the commission may establish a mandatory rate-adjustment clause for the company so affected in order to provide for full recovery of reasonable and prudent overhead and fixed costs.
  6. The commission shall conduct a contested case proceeding to establish a performance-based incentive plan that allows for additional compensation for each electric distribution company and each company providing gas to end-users and/or retail customers based on the level of its success in mitigating the cost and variability of electric and gas services through procurement portfolios.
    1. The office of energy resources shall conduct a study and analysis of the electric and gas distribution company’s state energy efficiency programs that will examine implemented program and planned conservation measures and review and confirm the claimed energy savings. In carrying out this study, the office shall utilize a representative sample of different customer classes and measures that have and/or will be participating in the state energy efficiency programs. At a minimum, the study performed by the office of energy resources shall include the following in its scope of work:
      1. Independently review and summarize the electric and gas distribution company process for incorporating results from completed evaluation studies into ongoing energy efficiency program reporting and implementation.
      2. Conduct an independent review of gas and electricity efficiency programs, which may include billing analysis techniques. The scope and subjects of this analysis will be decided by the working group with input and advice from an independent consultant. The analysis will be conducted by a qualified independent consultant using industry accepted methods.
      3. Review the data-collection practices, including metering equipment used; sampling frequency; sample sizes; and data validation procedures, and the methods for data analysis employed, as deemed appropriate by the independent evaluator.
      4. Study results and recommendations will be presented to the public utilities commission and the energy efficiency and resource management council.
      5. Low-income energy users;
      6. Electric and gas distribution company; and
      7. Energy efficiency and resource management council.
    2. The office of energy resources shall consult with the working group in development of the request for proposals (RFP), and during the course of the study, including the preliminary study results. The working group shall be comprised of one representative from each of the following groups chosen by the office of energy resources:

      (i) Large commercial and industrial energy users;

      (ii) Small business energy users;

      (iii) Residential energy users;

      (iv) Municipal and state energy users;

    3. The office of energy resources, in consultation with the electric and gas distribution company and representatives referenced in subsection (g)(2), shall be authorized to hire an energy consulting company or firm to carry out the energy efficiency verification study. The costs associated with this study, including, but not limited to, those associated with the consultant or firm contract and reasonable administrative costs incurred by the office in the execution of subsection (g) of this section, shall be recoverable through the system benefit charge subject to commission approval. Funding shall be transferred from the electric and gas distribution utility to the office of energy resources upon request by the office.
    4. The office of energy resources shall submit this report on or before October 30, 2019, to the governor, the president of the senate, and the speaker of the house. The office and its selected energy consulting company or firm shall host two (2) public presentations on the preliminary and final results of the study.

History of Section. P.L. 2006, ch. 236, § 6; P.L. 2006, ch. 237, § 6; P.L. 2007, ch. 6, § 1; P.L. 2010, ch. 15, § 2; P.L. 2010, ch. 17, § 2; P.L. 2012, ch. 241, art. 4, § 13; P.L. 2012, ch. 363, § 1; P.L. 2012, ch. 380, § 1; P.L. 2015, ch. 141, art. 14, § 5; P.L. 2018, ch. 79, § 1; P.L. 2018, ch. 97, § 1; P.L. 2021, ch. 223, § 1, effective July 8, 2021; P.L. 2021, ch. 224, § 1, effective July 8, 2021.

Compiler's Notes.

P.L. 2021, ch. 223, § 1, and P.L. 2021, ch. 224, § 1 enacted identical amendments to this section.

39-1-27.7.1. Revenue decoupling.

  1. The general assembly finds and declares that electricity and gas revenues shall be fully decoupled from sales pursuant to the provisions of this chapter and further finds and declares that any decoupling proposal submitted by an electric distribution company as defined in § 39-1-2(a)(12) or gas distribution company included as a public utility in § 39-1-2(a)(20) that has greater than one hundred thousand (100,000) customers, shall be for the following purposes:
    1. Increasing efficiency in the operations and management of the electric and gas distribution system;
    2. Achieving the goals established in the electric distribution company’s plan for system reliability and energy efficiency and conservation procurement as required pursuant to § 39-1-27.7(d) ;
    3. Increasing investment in least-cost resources that will reduce long-term electricity demand;
    4. Reducing risks for both customers and the distribution company including, but not limited to, societal risks, weather risks, and economic risks;
    5. Increasing investment in end-use energy efficiency;
    6. Eliminating disincentives to support energy-efficiency programs;
    7. Facilitating and encouraging investment in utility infrastructure, safety, and reliability; and
    8. Considering the reduction of fixed, recurring customer charges and transition to increased unit charges that more accurately reflect the long-term costs of energy production and delivery.
  2. Each electric distribution company as defined by § 39-1-2(a)(12) and gas distribution company included as a public utility in § 39-1-2(a)(20) having greater than one hundred thousand (100,000) customers shall file proposals at the commission to implement the policy set forth in subsection (a) of this section. The commission shall approve these proposals, provided they contain the features and components set forth in subsection (c) of this section, and that they are consistent with the intent and objectives contained in subsection (a) of this section. Actions taken by the commission in the exercise of its ratemaking authority for electric and gas rate cases shall be within the norm of industry standards and recognize the need to maintain the financial health of the distribution company as a stand-alone entity in Rhode Island.
  3. The proposals shall contain the following features and components:
    1. A revenue decoupling reconciliation mechanism that reconciles annually the revenue requirement allowed in the company’s base distribution-rate case to revenues actually received for the applicable twelve-month (12) period; provided that the mechanism for gas distribution shall be determined on a revenue-per-customer basis, in a manner typically employed for gas distribution companies in the industry. Any revenues over-recovered or under-recovered shall be credited to, or recovered from, customers, as applicable; and
    2. An annual infrastructure, safety, and reliability spending plan for each fiscal year and an annual rate-reconciliation mechanism that includes a reconcilable allowance for the anticipated capital investments and other spending pursuant to the annual pre-approved budget as developed in accordance with subsection (d) of this section.
  4. Prior to the beginning of each fiscal year, gas and electric distribution companies shall consult with the division of public utilities and carriers regarding their infrastructure, safety, and reliability spending plan for the following fiscal year, addressing the following categories:
    1. Capital spending on utility infrastructure;
    2. For electric distribution companies, operation and maintenance expenses on vegetation management;
    3. For electric distribution companies, operation and maintenance expenses on system inspection, including expenses from expected resulting repairs; and
    4. Any other costs relating to maintaining safety and reliability that are mutually agreed upon by the division and the company.

      The distribution company shall submit a plan to the division and the division shall cooperate in good faith to reach an agreement on a proposed plan for these categories of costs for the prospective fiscal year within sixty (60) days. To the extent that the company and the division mutually agree on a plan, such plan shall be filed with the commission for review and approval within ninety (90) days. If the company and the division cannot agree on a plan, the company shall file a proposed plan with the commission and the commission shall review and, if the investments and spending are found to be reasonably needed to maintain safe and reliable distribution service over the short and long term, approve the plan within ninety (90) days.

  5. The commission shall have the following duties and powers, in addition to its existing authorities established in this title:
    1. To maintain reasonable and adequate service-quality standards, after decoupling, that are in effect at the time of the proposal and were established pursuant to § 39-3-7 .
    2. The commission may exclude the low-income rate class from the revenue decoupling reconciliation-rate mechanism for either electric or gas distribution. The commission also may exclude customers in the large commercial and industrial rate class from the gas-distribution mechanism.
    3. The commission may adopt performance incentives for the electric distribution company that provide a shared-savings mechanism whereby the company would receive a percentage of savings realized as a result of achieving the purposes of this section while the remaining savings are credited to customers.
    4. The commission shall review and approve, with any necessary amendments, performance-based, energy-savings targets developed and submitted by the Rhode Island energy efficiency and resources management council. The performance-based targets shall also be used as a consideration in any shared-savings mechanism established by the commission pursuant to subsection (e)(3) of this section.
  6. The Rhode Island energy efficiency and resources management council shall propose performance-based, energy-savings targets to the commission no later than September 1, 2010. The targets shall include, but not be limited to, specific energy kilowatt-hour savings overall and peak-demand savings for both summer and winter peak periods expressed in total megawatts as well as appropriate targets recommended in the opportunities report filed with the commission pursuant to § 39-1-27.7(d)(3) . The council shall revise, as necessary, these targets on an annual basis prior to the reconciliation process established pursuant to subsection (c) of this section and submit its revisions to the commission for approval.
  7. Reporting.  Every electric distribution company, as defined in subsection (a) of this section, shall report to the governor, general assembly, division of public utilities and carriers, and public utilities commission on or before September 1, 2012. The report shall include, but not be limited to, the following elements:
    1. A comparison of revenues from traditional rate regulation and how the revenues have differed as part of an approved decoupling structure;
    2. A summary of how the company is achieving the performance-based targets that may have been adopted pursuant to subsection (e)(4) of this section;
    3. A summary of any shared savings the company may have received pursuant to the performance incentives authorized in subsection (e)(3) of this section;
    4. A summary of how the company is achieving the service-quality standards required in subsection (e)(1) of this section;
    5. An overview of how decoupling is impacting revenue stabilization goals that have resulted from decoupling; and
    6. A summary of any customer education programs provided.

History of Section. P.L. 2010, ch. 15, § 1; P.L. 2010, ch. 17, § 1; P.L. 2016, ch. 451, § 1; P.L. 2016, ch. 452, § 1.

39-1-27.8. Supply procurement portfolio.

Each electric distribution company shall submit a proposed supply procurement plan or plans to the commission not later than March 1, 2009, and each March 1 thereafter through March 1, 2018. The supply procurement plan or plans shall be consistent with the purposes of least-cost procurement and shall, as appropriate, take into account plans and orders with regard to system reliability and energy efficiency and conservation procurement. The supply procurement plan or plans will include the acquisition procedure, the pricing options being sought, and a proposed term of service for which standard-offer service will be acquired. The term of service may be of various, staggered term lengths and acquisitions may occur from time to time and for more than one supplier for segments of standard-offer load over different terms, if appropriate. There also may be separate procurement plans for residential and nonresidential classes or separate plans among nonresidential classes. All the components of the procurement plans shall be subject to commission review and approval. Once a procurement plan is approved by the commission, the electric distribution company shall be authorized to acquire standard-offer service supply consistent with the approved procurement plan and recover its costs incurred from providing standard-offer service pursuant to the approved procurement plan. The commission may periodically review the procurement plan to determine whether it should be prospectively modified due to changed market conditions. The commission shall have the authority and discretion to establish eligibility criteria by rate class, and approve special tariff conditions and rates proposed by the electric distribution company that the commission finds are in the public interest, including, without limitation: (1) Short- and long-term optional service at different rates; (2) Term commitments or notice provisions before individual customers leave standard-offer service; (3) Standard-offer service rates for residential or any other special class of customers that are different than the rates for other standard-offer customers; (4) Time of use commodity pricing for specified classes of customers, except residential customers; provided, however, that the commission may establish pilot programs for time of use commodity pricing for residential customers; and/or (5) Standard-offer service rates that are designed to encourage any class of customers to purchase supply directly from the market.

History of Section. P.L. 2006, ch. 236, § 6; P.L. 2006, ch. 237, § 6.

39-1-27.9. Office of energy resources participation.

In any commission inquiry into, or examination of, matters that relate to or could potentially impact any programs, functions, or duties of the office of energy resources and/or the energy efficiency and resources management council, including, but not limited to, those programs, functions and duties pursuant to this chapter and chapters 140, 140.1, 140.2, and 141 of title 42, the office of energy resources and the energy resources council shall be deemed, upon the formal request of the office or the council as appropriate, to be an interested party for all purposes, and as such, shall receive all notices and may file complaints, institute proceedings, and participate as a party in administrative hearings.

History of Section. P.L. 2006, ch. 236, § 6; P.L. 2006, ch. 237, § 6; P.L. 2020, ch. 79, art. 1, § 2.

Compiler’s Notes.

Chapter 141 of title 42, referred to in this section, was repealed by P.L. 2008, ch. 100, art. 18, § 1, effective July 1, 2008.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

39-1-27.10. Electric and gas distribution companies required to file affordable energy plans.

  1. On or before January 2, 2007, each gas and electric distribution company shall submit to the commission a plan for affordable energy for low-income households, including very low-income households as defined in § 42-141-2 [repealed]. The plan shall provide for the implementation of the affordable energy fund and shall include provisions for discounted distribution rates and customer charges; payments on arrearages and unpaid balances by low-income households; and energy efficiency and weatherization, to the extent that funding is allocated by the commissioner pursuant to § 42-141-5(d) [repealed]. Any amendments or revisions to the plan after December 1, 2007, shall provide for referral of eligible households, as appropriate, to community action agencies or other entities designated by the office of energy resources for weatherization assistance.
  2. On or before April 30, 2007, the commission shall review the plan and issue an order with regard to the plan not later than May 31, 2007. The order shall be effective not later than November 1, 2007. The commission shall cause a review, and as appropriate an amendment, of the plan at least every three (3) years between July 1, 2007, and July 1, 2016.
  3. On or before November 1, 2007, each gas and electric distribution company shall implement an affordable energy plan in accordance with the order of the commission.

History of Section. P.L. 2006, ch. 236, § 6; P.L. 2006, ch. 237, § 6; P.L. 2007, ch. 51, § 1; P.L. 2007, ch. 66, § 1.

Compiler’s Notes.

Chapter 141 of title 42, referred to in this section, was repealed by P.L. 2008, ch. 100, art. 18, § 1, effective July 1, 2008.

39-1-27.11. Affordable gas for public housing authorities.

The commission shall authorize public housing authorities, created pursuant to chapter 25 or 26 of title 45, to participate in “business choice programs” provided the commission determines that the accounts are billed to and paid by a single housing provider; that the accounts are located on contiguous sites; that other applicable standards for program participation are met; and that such participation is reasonable and prudent.

History of Section. P.L. 2007, ch. 441, § 1.

39-1-27.12. Low Income Home Energy Assistance Program Enhancement Plan.

  1. The Low Income Home Energy Assistance Program Enhancement Plan (hereinafter “LIHEAP Enhancement Plan”) is hereby created to supplement the federal Low Income Home Energy Assistance Program (“LIHEAP”) funding being received by customers of Rhode Island electric and gas distribution companies.
  2. Within a period of time sufficient to accomplish the purposes of this section, but not longer than ninety (90) days after the effective date of this chapter, the department of human services shall develop a recommended monthly “LIHEAP enhancement charge” rate for the following year and make a filing with the commission pursuant to this chapter recommending rates. Thereafter annually, but no later than October 15 of each year, the department shall make filings with the commission to recommend the LIHEAP enhancement charge rates for each class of electric and natural gas distribution company customer for the following year.
  3. A LIHEAP enhancement charge approved by the commission shall have the following limitations:
    1. For electric distribution company customers, the charge shall not be more than ten dollars ($10.00) per year.
    2. For natural gas distribution company customers, the charge shall not be more than ten dollars ($10.00) per year.
    3. The total projected annual revenue for the LIHEAP enhancement plan through charges to all electric and natural gas distribution company customers shall not exceed seven million five hundred thousand dollars ($7,500,000) and shall not be below six million five hundred thousand dollars ($6,500,000). A minimum of five percent (5%) shall be allocated to provide assistance to customers who are seeking LIHEAP certification for the sole purpose of entering into an arrearage plan as defined in § 39-2-1(d)(2) between April 15 and September 30 of each year. Such customers must be a homeless family or individual transitioning from a shelter into housing and who have provided documentation acceptable to the department of human services. Any funds remaining at the end of the fiscal year shall be available for the upcoming winter season.
  4. The commission shall open a docket, to consider for approval, LIHEAP enhancement charge rates proposed by the department. In reviewing the recommended rates, the commission shall give due consideration to the recommendations of the department and the standards set forth in subsection (c). The commission shall issue a decision within sixty (60) days after said recommendations and report are filed with the commission establishing the enhancement plan charge rates.
  5. The electric or gas distribution company shall use the funds collected through this enhancement plan charge to provide a credit to customers’ accounts that are receiving federal LIHEAP assistance payments in a manner determined by the department of human services. The department of human services shall designate to the gas- or electric distribution company the qualifying customer accounts and the amounts to be credited to those customer accounts, provided that the total amount to be credited to those accounts shall be fully funded by, and not exceed, the total amount collected through the enhancement plan charge. The electric or gas distribution company’s added administrative expenses to process the credit assignments provided to it by the department of human services will be recoverable either from the LIHEAP enhancement charge or through a separate charge approved by the public utilities commission.
  6. As used in this section, “electric and natural gas distribution company” means a company as defined in § 39-1-2(a)(12) , but not including the Block Island Power Company or the Pascoag Utility District.

History of Section. P.L. 2011, ch. 382, § 2; P.L. 2011, ch. 404, § 2; P.L. 2014, ch. 145, art. 14, § 2; P.L. 2016, ch. 125, § 1; P.L. 2016, ch. 137, § 1; P.L. 2017, ch. 451, § 15.

Law Reviews.

Alyssa Lauren Lemire, Comment: Raising the Meter in Rhode Island: A Better Approach to Rhode Island’s Net Metering Laws, 25 Roger Williams U. L. Rev. 470 (2020).

39-1-27.13. Alternative suppliers and purchase of receivables program.

  1. The general assembly recognizes the importance of competitive choice in electric generation service.
  2. The commission may implement a purchase of receivables program where the electric distribution company purchases the receivables of a nonregulated power producer at a discount rate that is then offset from the monthly payments the electric distribution company makes to the nonregulated power producer if the commission finds that the benefits of the program to ratepayers would exceed the costs to ratepayers.

History of Section. P.L. 2018, ch. 102, § 1; P.L. 2018, ch. 108, § 1.

39-1-28. Acceptance of grants.

The commission and the division are authorized and empowered to apply for and receive and accept, in the name of the state, grants, of property, money, and services and other assistance offered or made available to them by any person, any political subdivision or entity, or any other agency, governmental or private, including the United States or any of its agencies and instrumentalities, which they may use for any purpose in furtherance of their powers and duties; provided, however, that acceptance of any grant shall not make the state in any manner legally or equitably liable to the donor relative to the use of the grant. The grants received shall not be covered into the general fund of the state, but shall be kept by the general treasurer in a separate fund for the commission and division and shall be paid out by him or her only upon receipt of properly authenticated vouchers signed by the chairperson of the commission or the administrator as appropriate, without the necessity of appropriation or reappropriation by the general assembly.

History of Section. P.L. 1969, ch. 240, § 1; P.L. 1973, ch. 199, § 1; P.L. 1996, ch. 316, § 1.

39-1-29. Proceedings before federal agencies — Cooperation with other agencies.

The administrator shall represent the state in proceedings before agencies of the federal government on all matters affecting public utility services rendered, or to be rendered, in this state, and shall participate with other governmental and private agencies in studying integration or coordination of power systems to achieve low generating and transmission costs and possible regionalization of regulation.

History of Section. P.L. 1969, ch. 240, § 1; P.L. 1973, ch. 199, § 1.

39-1-30. Zoning review — Approval of ordinances and regulations.

Every ruling, decision, and order of a zoning board of review and of a building, gas, water, health, or electrical inspector of any municipality affecting the placing, erection, and maintenance of any plant, building, wires, conductors, fixtures, structures, equipment, or apparatus of any company under the supervision of the commission, shall be subject to the right of appeal by any aggrieved party to the commission within ten (10) days from the giving of notice of the ruling, decision, or order. The commission, after hearing, upon notice to all parties in interest, shall, as speedily as possible, determine the matter in question, weighing the consideration of public convenience, necessity, and safety against the consideration of public zoning, and shall have jurisdiction to affirm or revoke or modify the ruling, decision, or order to make any order in substitution thereof. Every ordinance enacted, or regulation promulgated, by any town or city affecting the mode or manner of operation or the placing or maintenance of the plant and equipment of any company under the supervision of the commission, shall be subject to the right of appeal by any aggrieved party to the commission within ten (10) days from the enactment or promulgation. The commission, after a hearing, upon notice to all parties in interest, shall determine the matter giving consideration to its effect upon the public health, safety, welfare, comfort, and convenience.

History of Section. P.L. 1969, ch. 240, § 1; P.L. 1971, ch. 265, § 2; P.L. 1972, ch. 205, § 2.

Cross References.

Zoning ordinances, § 45-24-27 et seq.

Law Reviews.

2000 Survey of Rhode Island Law, see 6 Roger Williams U. L. Rev. 593 (2001).

NOTES TO DECISIONS

Constitutionality.

This section is a constitutional delegation of the legislature’s power to the public utilities commission to review actions of zoning boards and municipal inspections and those involving regulations and ordinances, given the specificity of the functions delegated, the accompanying standards of this section, and the administrative safeguards of chapter 1 of title 39. East Greenwich v. O'Neil, 617 A.2d 104, 1992 R.I. LEXIS 209 (1992).

The Rhode Island Public Utilities Commission’s review of a municipal ordinance prohibiting the construction of a certain class of high voltage lines does not involve a coordinate branch of government exercising powers in violation of the separation of powers doctrine. East Greenwich v. O'Neil, 617 A.2d 104, 1992 R.I. LEXIS 209 (1992).

Construction.

In examining this title as a whole, it is evident that the legislature has expressed its intent to cover the field of public-utilities regulation and has declared that the public utilities commission has exclusive power to regulate public utilities. Accordingly, a municipal ordinance regulating the construction of power lines was pre-empted by state law because it invaded a field that the state has intentionally occupied. East Greenwich v. O'Neil, 617 A.2d 104, 1992 R.I. LEXIS 209 (1992).

This section empowers the commission not only to review municipal actions that are administrative in nature or are zoning board decisions but also to review a municipal ordinance regulating the construction of power lines. The word “ordinance” in this section was meant to include the town council’s ordinance. East Greenwich v. O'Neil, 617 A.2d 104, 1992 R.I. LEXIS 209 (1992).

Appellate Review of Zoning Board Decision.

The fact that an appeal in a zoning proceeding involving a public utility must, under this section, be taken to the public utilities commission and not to the superior court does not in any way restrict the inherent power of the supreme court to review, in its discretion, by common law certiorari, the decision of the zoning board. Merciol v. New Eng. Tel. & Tel. Co., 110 R.I. 149 , 290 A.2d 907, 1972 R.I. LEXIS 892 (1972).

Applicability of § 45-24-20.

An appeal in a zoning proceeding involving a public utility must be taken under this section and not under former § 45-24-20 (see now § 45-24-69 ). Merciol v. New Eng. Tel. & Tel. Co., 110 R.I. 149 , 290 A.2d 907, 1972 R.I. LEXIS 892 (1972).

Burden of Proof.

Since a municipal ordinance is presumed to be valid, aggrieved parties have the burden to prove by a fair preponderance of the evidence that a challenged ordinance was an unreasonable or undue burden. In re Ordinance Adopted by the City of Providence, 745 A.2d 769, 2000 R.I. LEXIS 32 (2000).

Electrical Cogeneration Facility Not Under Commission’s Supervision.

An electrical cogeneration facility, which could not be considered an “electric utility” or a “electric generating facility,” is not under the commission’s supervision. East Providence v. Public Utils. Comm'n., 566 A.2d 1305, 1989 R.I. LEXIS 167 (1989).

Legislative Intent.

The legislature intended the public utilities commission to use a public interest standard in reviewing municipal ordinances and regulations. In re Ordinance Adopted by the City of Providence, 745 A.2d 769, 2000 R.I. LEXIS 32 (2000).

Public Utilities Regulation.

A town council’s approval of amendments regarding electromagnetic fields to its comprehensive plan invaded the field of public utilities regulation which the legislature has expressly preempted from town and city intrusion under this section. The amendments affected the manner of operation or the placement of equipment of a public utility and amounted to more than an innocuous general policy statement. Town of E. Greenwich v. Narragansett Elec. Co., 651 A.2d 725, 1994 R.I. LEXIS 298 (1994).

Scope of Authority.

Although a facial examination of this provision clearly granted jurisdiction to the public utilities commission to review an ordinance affecting the placing and maintenance of equipment of utility companies and the ability of those utilities to connect their services to buildings occupied by customers, that granting of jurisdiction did not authorize or empower the commission to nullify or substantially modify a municipal ordinance that regulated the maintenance and repair of city streets and highways unless that ordinance was unduly burdensome and adversely affected the ability of a utility company to service its customers. In re Ordinance Adopted by the City of Providence, 745 A.2d 769, 2000 R.I. LEXIS 32 (2000).

Collateral References.

Applicability of zoning regulations to projects of nongovernmental public utilities as affected by utility’s power of eminent domain. 87 A.L.R.3d 1265.

Validity and construction of regulation by municipal corporation fixing sewer-use rates. 61 A.L.R.3d 1236.

Validity of municipal regulation of aircraft flight paths or altitudes. 36 A.L.R.3d 1314.

39-1-30.1. Validation of location of utilities.

The locations for all lines for the transmission or distribution of electric current or for the providing of audio or visual telephonic or telegraphic communication service heretofore acquired or constructed by public utilities as defined under § 39-1-2 , upon, along, under, or over the public ways and places of this state, and the locations for poles, piers, abutments, conduits, manholes, vaults, and other fixtures, including those jointly owned, necessary to sustain, protect, or operate the wires and cables of the lines, and actually in place on May 19, 1982, are hereby made lawful notwithstanding any deficiency in the proceedings relative to their location and erection.

History of Section. P.L. 1982, ch. 427, § 2.

39-1-30.2. Possession of land adverse to a utility.

No interest in real property of an electric distribution company, electric transmission company, gas, telephone, or water utility may be defeated or otherwise adversely affected by the use, possession, or occupancy of the real property by any person.

History of Section. P.L. 1991, ch. 123, § 1; P.L. 1996, ch. 316, § 1.

39-1-30.3. Installation of public utility services for abutting owners on private ways authorized.

The owner, or owners, of real estate abutting on a private way who have by deed or by prescription existing rights of ingress and egress upon the way or other private ways, shall have the right to place, install, or construct in, on, along, under, and upon the private way or other private ways, poles and other appurtenances necessary for the transmission of electricity or telephone service, provided the facilities do not unreasonably obstruct the private way or other private ways, and do not interfere with or be inconsistent with the existing use by others of the way or other private ways; and, provided further, that such placement, installation, or construction is done in accordance with regulations, plans, and practices of the utility company that is to provide the electricity or telephone service. The agencies that provide the service shall comply with the rules and regulations of the public utilities commission. Any owner, or owners, may grant permission to a public utility company to enter upon the way or other private ways to place, install, repair, or relocate poles and other necessary appurtenances for the transmission of electricity or telephone service in accordance with the company or companies’ regulations, practices, and tariffs filed with the public utilities commission; provided, however, that no charge or added assessment shall be levied by the public utility company or companies against the owner or owners not connected to the service or services. Neither the person installing or repairing public utility facilities, nor the facilities, nor the electricity or telephone service transmitted shall be deemed to constitute a trespass upon the way or ways.

History of Section. P.L. 1994, ch. 353, § 1.

39-1-31. Eminent domain.

  1. Before exercising any power of condemnation, a company shall present a petition to the commission describing the land, right of way, easement, or other interest in property it proposes to acquire, and setting forth why it is necessary to acquire it by eminent domain. The commission shall set a time and place for hearing the petition and shall give notice as the commission deems the circumstances require. If the commission shall determine that the proposed taking is for the benefit of the people of the state, and that it is necessary in order that the petitioner may render adequate service to the public, and that the use to which the property taken will be put will not unduly interfere with the orderly development of the region and scenic development, it shall issue a certificate authorizing the company to proceed with condemnation.
  2. Any company acquiring an interest in land through the provisions of subsection (a) shall indemnify and hold harmless any and all owners, present and future, of land in which any right of way, easement, or other interest is acquired from harm caused by operations of the acquiring company that cause injury of any kind to the person or property of another.
  3. No insurance company shall cause an insured to be placed into a risk pool by virtue of the fact that an easement has been granted under this section.

History of Section. P.L. 1969, ch. 240, § 1; P.L. 1991, ch. 195, § 1.

Cross References.

Acquisition of land, § 37-6-1 et seq.

NOTES TO DECISIONS

In General.

The power of eminent domain is not confined to the taking of property for which there is an absolute and immediate need. It extends also to the taking of property which is reasonably necessary, and for which a need will probably exist within a reasonable time. In re Narragansett Elec. Co., 544 A.2d 121, 1988 R.I. LEXIS 104 (1988).

Burden of Proof.

The petition sponsor bears the burden of proof to establish that each legal requirement of this section is met. In re Narragansett Elec. Co., 544 A.2d 121, 1988 R.I. LEXIS 104 (1988).

Condemnation Upheld.

A condemnation of property is lawful and reasonable where the commissioners are satisfied that the “development of additional transmission capability will contribute to the reliability of electricity supply” and where the findings are substantially supported by legal evidence. In re Narragansett Elec. Co., 544 A.2d 121, 1988 R.I. LEXIS 104 (1988).

Determining for “Benefit of People.”

Where the commission equated the term “for the benefit of the people of the state” with a requirement that a utility’s condemnation proposal must constitute a “public use,” the method used by the commission to determine whether the proposed transmission line will benefit the people of the state is not unreasonable. In re Narragansett Elec. Co., 544 A.2d 121, 1988 R.I. LEXIS 104 (1988).

Reasonable Conditions on Orders.

Administrative commissions have the right to attach conditions to orders so long as the conditions are reasonable and based on evidence. In re Narragansett Elec. Co., 544 A.2d 121, 1988 R.I. LEXIS 104 (1988).

Review.

An electric utility’s proposed transmission-line condemnation route should not be set aside by a reviewing authority absent a finding of an abuse of discretion or arbitrariness, capriciousness, or bad faith on the part of such utility. In re Narragansett Elec. Co., 544 A.2d 121, 1988 R.I. LEXIS 104 (1988).

39-1-32. Emergency powers of commission.

  1. Any general or public law notwithstanding, the commission, when it determines that public safety so requires, or that failure to act immediately will result in irreparable injury to the public interest, or that an emergency exists in the financial affairs of a public utility which, if not met immediately, will interfere with the accommodations, convenience, and welfare of the people, may issue an order effective immediately, but for temporary duration, until formal notice be given and a hearing had of the parties in interest.
  2. The superior court, upon the filing of a complaint sworn to by two (2) or more commissioners setting forth that a public utility has ceased, or that there is imminent danger of a public utility ceasing to provide service to its customers, and that in their opinion public safety requires that immediate action be taken to avoid irreparable injury to the public welfare or safety, shall forthwith issue a citation to the company to be served in such manner as the court shall direct, commanding the company to appear before the court on a day and in a place to be mentioned in the citation, then and there to show cause, if any it has, why a receiver of the company with all the powers and rights of a receiver in equity should not be appointed. Within a time to be fixed by the court, the receiver so appointed shall propose a plan for reorganization of the company, which plan shall be fair and equitable to all creditors and stockholders of the company, and protect the welfare and safety of the public. Upon the filing of the plan, the court shall order a hearing on the plan at such time and subject to such notice as may be provided in the order. At the hearing the court shall enter such decree as may be appropriate.

History of Section. P.L. 1969, ch. 240, § 1.

NOTES TO DECISIONS

Concurrent Jurisdiction.

The jurisdiction vested in the division and the commission by this section and § 39-3-13 is concurrent rather than exclusive. Bristol & Warren Gas Co. v. Burke, 444 A.2d 852, 1982 R.I. LEXIS 842 (1982).

Duration of Orders.

An emergency turn-on order addressed to a public utility by the public utilities commission must provide that the order by its terms be of temporary duration until such time as the parties have been heard. Providence Gas Co. v. Public Utils. Comm'n, 116 R.I. 225 , 354 A.2d 413, 1976 R.I. LEXIS 1269 (1976).

Lack of Emergency.

Where the commission wished to reassess the refund mechanism of a purchase gas price adjustment clause to arrive at a more equitable result, since neither the public safety nor the possibility of irreparable injury was involved, the commission’s action in staying the operation of a refund pending a hearing was improper. Providence Gas Co. v. Burke, 119 R.I. 487 , 380 A.2d 1334, 1977 R.I. LEXIS 2055 (1977).

39-1-33. Reports.

The commission and division shall make reports due on the first day of June and the first day of December to the governor for transmittal to the general assembly, which shall contain summaries of every rate-case hearing, and/or order of the commission and division occurring in the period immediately preceding the first day of June and the first day of December.

History of Section. P.L. 1912, ch. 795, § 9; G.L. 1923, ch. 253, § 9; P.L. 1929, ch. 1394, § 1; G.L. 1938, ch. 122, § 7; G.L. 1956, § 39-1-9 ; G.L. 1956, § 39-1-33 ; P.L. 1969, ch. 240, § 1; P.L. 1973, ch. 199, § 1; P.L. 1979, ch. 96, § 1; P.L. 1996, ch. 316, § 1; P.L. 1997, ch. 326, § 103.

39-1-34. Disposition of fees.

All fees charged and collected by the division shall belong to the state and shall be paid into the state treasury monthly, by the administrator, accompanied by a detailed statement thereof, and become part of the general funds of the state.

History of Section. P.L. 1912, ch. 795, § 9; G.L. 1923, ch. 253, § 9; P.L. 1929, ch. 1394, § 1; G.L. 1938, ch. 122, § 7; G.L. 1956, § 39-1-8 ; G.L. 1956, § 39-1-34 ; P.L. 1969, ch. 240, § 1.

39-1-35. Conflict of interest.

A person, or his or her or dependent child, spouse, of any person, who is, or has been in the past one year, in the employ of or holding any official relation to any company subject to the supervision of the commission, or engaged in the management of the company, or owning stock, bonds, or other securities thereof, or who is, or has been in the past one year, in any manner, connected with the operation of the company in this state, shall not be a commissioner or clerk of the commission; nor shall any commissioner or clerk of the commission, personally or in connection with a partner or agent, render professional service for or against or make or perform any business contract with any company subject to the supervision, relating to the business of the company, except contracts made with them as common carriers, or in regular course of public service.

History of Section. P.L. 1969, ch. 240, § 1; P.L. 1996, ch. 316, § 1.

Cross References.

Conflicts of interest, public officers and employees, §§ 36-14-1 36-14-19 .

39-1-36. Offices of commission and division.

The department of administration shall furnish the commission with suitable offices, quarters in which to hold its meetings and transact its business, and a properly appointed hearing room adequate to accommodate the public, witnesses, stenographers, and the commissioners and their clerks. The department of administration shall furnish the division with offices suitably located for the convenience of the public and properly equipped for keeping its records, maps, and documents and for the efficient use of its library.

History of Section. P.L. 1912, ch. 795, § 7; G.L. 1923, ch. 253, § 7; G.L. 1938, ch. 122, § 5; G.L. 1956, § 39-1-4 ; G.L. 1956, § 39-1-36 ; P.L. 1969, ch. 240, § 1; P.L. 1996, ch. 316, § 1.

39-1-37. “Public utility administrator” defined — Continuity of functions.

Wherever in any general or public law the words “public utility administrator” appears, the same words shall be deemed to refer to and mean administrator of the division of public utilities and carriers. The governor is authorized to transfer or reallocate, by executive order, the whole or any part of the appropriations for the public utility administrator or commission, to the commission or the division.

History of Section. P.L. 1969, ch. 240, § 1; P.L. 1980, ch. 335, § 6; P.L. 1984, ch. 81, § 11; P.L. 1996, ch. 316, § 1.

39-1-37.1. Ratepayers advisory board.

  1. There is hereby established the ratepayers advisory board. The advisory board shall consist of the following public members:
    1. Four (4) members appointed by the speaker of the house of representatives, one of whom shall represent the interests of residential ratepayers; one of whom shall represent the interests of the elderly and disabled; one of whom shall represent a community-based consumer organization representing low-income individuals; and one of whom shall represent a LIHEAP consumer.
    2. Four (4) members appointed by the senate president, one of whom shall represent the interests of residential ratepayers; one of whom shall represent a chamber of commerce; one of whom shall represent a nonprofit energy consortium of businesses; and one of whom shall represent a community action agency LIHEAP program provider.
    3. Three (3) members appointed by the governor, one of whom shall represent the LIHEAP program administration; one of whom shall represent the interests of small business owners; and one of whom shall represent the interests of residents of affordable housing.
  2. The appointments to the advisory board shall be made as follows: each appointing authority shall appoint one member to serve a term of one year, one member to serve a term of two (2) years, and one member to serve a term of three (3) years. Thereafter, each member appointed to the advisory board shall serve a three-year (3) term. The board members are eligible to succeed themselves. A vacancy, other than by expiration of a term, shall be filled in the manner of the original appointment, but only for the unexpired portion of the term.
  3. Five (5) members shall constitute a quorum. A majority vote of the board shall be required for all recommendations, advice, and approvals of the board, in accordance with this section.
  4. A board member shall not receive compensation for his or her service on the board but may receive reimbursement for travel and other necessary expenses, while engaged in the performance of official duties of the board.
  5. The board shall elect annually a chairperson and vice chairperson from among its membership.
  6. The board shall receive staff and administrative support from the division, to organize meetings and take and distribute minutes. The division shall also furnish the advisory board a suitable location to hold its meetings.
  7. The board shall meet at least quarterly and at the call of the chairperson or four (4) board members. The administrator shall be present for all board meetings to inform the board of the actions of the division and to respond to the board’s inquiries.
  8. The board shall review legislative proposals and comment on existing state laws relating to residential ratepayers.
  9. The board shall advise the administrator on matters concerning residential ratepayers including, but not limited to utility shutoff policies, rate affordability, conservation measures, consumer education, smart meters and/or restricted use meters, customer service charges, legislation pending before the general assembly, and legislative initiatives.
  10. The advisory board shall issue an annual report of findings, including recommendations on current or proposed state programs, policies, regulations, and laws, to the governor and the general assembly.
  11. The board shall be subject to the provisions of chapter 2 of title 38, access to public records act, and chapter 46 of title 42, open meetings act.

History of Section. P.L. 2011, ch. 382, § 3; P.L. 2011, ch. 404, § 3; P.L. 2013, ch. 521, § 1.

39-1-38. Liberal construction — Incidental powers — Severability.

The provisions of this title shall be interpreted and construed liberally in aid of its declared purpose. The commission and the division shall have, in addition to powers specified in this chapter, all additional, implied, and incidental power that may be proper or necessary to effectuate their purposes. No rule, order, act, or regulation of the commission and of the division shall be declared inoperative, illegal, or void for any omission of a technical nature. If any provision of this title, or of any rule or regulation made thereunder, or the application thereof to any company or circumstance, is held invalid by a court of competent jurisdiction, the remainder of the title, rule, or regulation, and the application of the provision to other companies or circumstances shall not be affected thereby. The invalidity of any section or sections or parts of any section or sections of this title shall not affect the validity of the remainder of the title.

History of Section. P.L. 1912, ch. 795, § 58; G.L. 1923, ch. 253, § 56; G.L. 1938, ch. 122, § 53; G.L. 1956, § 39-1-17 ; G.L. 1956, § 39-1-38 ; P.L. 1969, ch. 240, § 1; P.L. 1997, ch. 326, § 103; P.L. 2020, ch. 79, art. 1, § 2.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

NOTES TO DECISIONS

Additional Power.

The commission’s “additional, implied and incidental power” is broad enough to authorize the commission to require utilities to present acceptable books of account to support their requests for rate relief and to set specific standards to be met before those books will be deemed acceptable. Bristol & Warren Gas Co. v. Harsch, 119 R.I. 807 , 384 A.2d 298, 1978 R.I. LEXIS 625 (1978).

The power to make refunds and to set rates as set forth in chapter 3 of this title includes by implication the power to avoid windfalls to utilities and unjust enrichment by the application of an appropriate quantum of interest by way of compensation for the use of customers’ moneys pending determination of the amount of the refund to be made and the method of disbursement to be used. Bristol & Warren Gas Co. v. Burke, 444 A.2d 858, 1982 R.I. LEXIS 853 (1982).

Legislative Intent.

The statutory sentiments of § 39-1-1 and this section represent a clear legislative intent to grant the commission broad powers as it seeks to establish a system of rates which will be just and equitable to all concerned including the utility and its customers. Rhode Island Chamber of Commerce Fed'n v. Burke, 443 A.2d 1236, 1982 R.I. LEXIS 829 (1982).

Rate Design.

The commission has the power to formulate a rate design that may differ substantially from that presented by the utility. Rhode Island Chamber of Commerce Fed'n v. Burke, 443 A.2d 1236, 1982 R.I. LEXIS 829 (1982).

Temporary Rate Increase.

Though the public utilities administrator (now commission) has, subject to judicial review, broad power to fix rates which public utilities may charge for services, he may not grant temporary rate increases without finding an emergency as justification therefor. Gardiner v. Kennelly, 79 R.I. 367 , 89 A.2d 184, 1952 R.I. LEXIS 57 (1952).

The public utilities administrator (now commission) may not grant a permanent increase in utility rates on a petition for temporary emergency rate increases as requirements of notice and supporting schedules of rates and charges may differ with the type of relief asked. Gardiner v. Kennelly, 79 R.I. 367 , 89 A.2d 184, 1952 R.I. LEXIS 57 (1952).

39-1-39. [Repealed.]

History of Section. P.L. 1980, ch. 122, § 1; Repealed by P.L. 1996, ch. 316, § 1, effective August 7, 1996.

Compiler’s Notes.

Former § 39-1-39 concerned purchase of power from out-of-state.

39-1-40. Toll-free telephone service for complaints.

The division shall maintain a toll-free telephone service where any consumer in Rhode Island may register an initial complaint against any public utility or nonregulated power producer. This toll-free telephone service may also be used by cable television subscribers for the purpose stated above.

History of Section. P.L. 1986, ch. 533, § 1; P.L. 1996, ch. 316, § 1.

39-1-41. [Repealed.]

History of Section. P.L. 1987, ch. 22, § 2; Repealed by P.L. 1996, ch. 316, § 1, effective August 7, 1996.

Compiler’s Notes.

Former § 39-1-41 concerned distribution and sale of electrical energy purchased from power projects.

39-1-42. Access to telephone information services for persons with disabilities.

  1. The public utilities commission shall establish, administer, and promote an information accessibility service that includes:
    1. A statewide telephone relay service and, through the competitive bidding process, contract for the administration and operation of such a relay system for utilization of the telecommunications network by deaf, hard-of-hearing and speech-impaired persons;
    2. The adaptive telephone equipment loan program capable of servicing the needs of persons who are deaf, hard of hearing, severely speech impaired, or those with neuromuscular impairments for use with a single-party telephone line, or wireless telephone, to any subscriber who is certified as deaf, hard of hearing, severely speech impaired, or with neuromuscular impairments by a licensed physician, audiologist, speech pathologist, or a qualified state agency, pursuant to chapter 23 of this title; and
    3. A telephone access to the text of newspaper programs to residents who are blind, deaf or blind, visually impaired, or reading impaired with a single-party telephone line.
  2. The commission shall establish, by rule or regulation, an appropriate funding mechanism to recover the costs of providing this service from each residence and business telephone access line or trunk in the state, including PBX trunks and centrex equivalent trunks and each service line or trunk, and upon each user interface number or extension number or similarly identifiable line, trunk, or path to or from a digital network. Notwithstanding the foregoing, there shall not be any additional funding mechanism used to charge each residence and business telephone access line or trunk in the state, including PBX trunks and centrex equivalent trunks and each service line or trunk, or upon each user interface number or extension number or similarly identifiable line, trunk, or path to or from a digital network, to recover the costs of providing the services outlined in subsection (a)(1), (2) or (3) above.
  3. The commission, with the assistance of the state commission on the deaf and hard of hearing, shall also develop the appropriate rules, regulations, and service standards necessary to implement the provisions of subsection (a)(1). At a minimum, however, the commission shall require, under the terms of the contract, that the relay service provider:
    1. Offer its relay services seven (7) days a week, twenty-four (24) hours a day, including holidays;
    2. Hire only qualified salaried operators with deaf language skills; and
    3. Maintain the confidentiality of all communications.
  4. The commission shall collect from the telecommunications service providers the amounts of the surcharge collected from their subscribers and remit to the department of human services an additional ten thousand dollars ($10,000) annually commencing in fiscal year 2005 for the adaptive telephone equipment loan program and forty thousand dollars ($40,000) to the department of human services for the establishment of a new telephone access to the text of newspaper programs. In addition, eighty thousand dollars ($80,000) shall annually be remitted to the Rhode Island commission on the deaf and hard of hearing for an emergency and public communication access program, pursuant to § 23-1.8-4 . The surcharge referenced hereunder shall be generated from existing funding mechanisms and shall not be generated as a result of any new funding mechanisms charged to each residence and business telephone access line or trunk in the state, including PBX trunks and centrex equivalent trunks and each service line or trunk, or upon each user interface number or extension number or similarly identifiable line, trunk, or path to or from a digital network.

History of Section. P.L. 1991, ch. 356, § 1; P.L. 2004, ch. 378, § 3; P.L. 2004, ch. 504, § 3; P.L. 2013, ch. 144, art. 17, § 1; P.L. 2016, ch. 45, § 1; P.L. 2016, ch. 52, § 1.

39-1-43. [Repealed.]

History of Section. P.L. 1997, ch. 142, § 1; Repealed by P.L. 2017, ch. 18, § 1, effective June 19, 2017; P.L. 2017, ch. 31, § 1, effective June 19, 2017.

Compiler’s Notes.

Former § 39-1-43 concerned legislative findings and declarations.

39-1-44. [Repealed.]

History of Section. P.L. 1997, ch. 142, § 1; Repealed by P.L. 2017, ch. 18, § 1, effective June 19, 2017; P.L. 2017, ch. 31, § 1, effective June 19, 2017.

Compiler’s Notes.

Former § 39-1-44 concerned definitions.

39-1-45. [Repealed.]

History of Section. P.L. 1997, ch. 142, § 1; Repealed by P.L. 2017, ch. 18, § 1, effective June 19, 2017; P.L. 2017, ch. 31, § 1, effective June 19, 2017.

Compiler’s Notes.

Former § 39-1-45 concerned securitization order; general.

39-1-46. [Repealed.]

History of Section. P.L. 1997, ch. 142, § 1; Repealed by P.L. 2017, ch. 18, § 1, effective June 19, 2017; P.L. 2017, ch. 31, § 1, effective June 19, 2017.

Compiler’s Notes.

Former § 39-1-46 concerned application and proceedings relating to securitization order.

39-1-47. [Repealed.]

History of Section. P.L. 1997, ch. 142, § 1; Repealed by P.L. 2017, ch. 18, § 1, effective June 19, 2017; P.L. 2017, ch. 31, § 1, effective June 19, 2017.

Compiler’s Notes.

Former § 39-1-47 concerned creation and existence of intangible transition property.

39-1-48. [Repealed.]

History of Section. P.L. 1997, ch. 142, § 1; Repealed by P.L. 2017, ch. 18, § 1, effective June 19, 2017; P.L. 2017, ch. 31, § 1, effective June 19, 2017.

Compiler’s Notes.

Former § 39-1-48 concerned security interests.

39-1-49. [Repealed.]

History of Section. P.L. 1997, ch. 142, § 1; Repealed by P.L. 2017, ch. 18, § 1, effective June 19, 2017; P.L. 2017, ch. 31, § 1, effective June 19, 2017.

Compiler’s Notes.

Former § 39-1-49 concerned obligations.

39-1-50. [Repealed.]

History of Section. P.L. 1997, ch. 142, § 1; Repealed by P.L. 2017, ch. 18, § 1, effective June 19, 2017; P.L. 2017, ch. 31, § 1, effective June 19, 2017.

Compiler’s Notes.

Former § 39-1-50 concerned interpretation and judicial review of securitization orders.

39-1-51. [Repealed.]

History of Section. P.L. 1997, ch. 142, § 1; Repealed by P.L. 2017, ch. 18, § 1, effective June 19, 2017; P.L. 2017, ch. 31, § 1, effective June 19, 2017.

Compiler’s Notes.

Former § 39-1-51 concerned change of securitization order upon judicial review.

39-1-52. [Repealed.]

History of Section. P.L. 1997, ch. 142, § 1; Repealed by P.L. 2017, ch. 18, § 1, effective June 19, 2017; P.L. 2017, ch. 31, § 1, effective June 19, 2017.

Compiler’s Notes.

Former § 39-1-52 concerned no effect on other industry restructuring provisions.

39-1-53. [Repealed.]

History of Section. P.L. 1997, ch. 142, § 1; Repealed by P.L. 2017, ch. 18, § 1, effective June 19, 2017; P.L. 2017, ch. 31, § 1, effective June 19, 2017.

Compiler’s Notes.

Former § 39-1-53 concerned agreement of the state.

39-1-54. [Repealed.]

History of Section. P.L. 1997, ch. 142, § 1; Repealed by P.L. 2017, ch. 18, § 1, effective June 19, 2017; P.L. 2017, ch. 31, § 1, effective June 19, 2017.

Compiler’s Notes.

Former § 39-1-54 concerned intangible transition property and the Uniform Commercial Code.

39-1-55. [Repealed.]

History of Section. P.L. 1997, ch. 142, § 1; Repealed by P.L. 2017, ch. 18, § 1, effective June 19, 2017; P.L. 2017, ch. 31, § 1, effective June 19, 2017.

Compiler’s Notes.

Former § 39-1-55 concerned attachment and perfection of security interest.

39-1-56. [Repealed.]

History of Section. P.L. 1997, ch. 142, § 1; Repealed by P.L. 2017, ch. 18, § 1, effective June 19, 2017; P.L. 2017, ch. 31, § 1, effective June 19, 2017.

Compiler’s Notes.

Former § 39-1-56 concerned filing system and commission rules.

39-1-57. [Repealed.]

History of Section. P.L. 1997, ch. 142, § 1, P.L. 2006, ch. 216, § 9; Repealed by P.L. 2017, ch. 18, § 1, effective June 19, 2017; P.L. 2017, ch. 31, § 1, effective June 19, 2017.

Compiler’s Notes.

Former § 39-1-57 concerned assignment.

39-1-58. [Repealed.]

History of Section. P.L. 1997, ch. 142, § 1; Repealed by P.L. 2017, ch. 18, § 1, effective June 19, 2017; P.L. 2017, ch. 31, § 1, effective June 19, 2017.

Compiler’s Notes.

Former § 39-1-58 concerned events of default; foreclosure.

39-1-59. [Repealed.]

History of Section. P.L. 1997, ch. 142, § 1; P.L. 2006, ch. 216, § 9; Repealed by P.L. 2017, ch. 18, § 1, effective June 19, 2017; P.L. 2017, ch. 31, § 1, effective June 19, 2017.

Compiler’s Notes.

Former § 39-1-59 concerned true sale.

39-1-60. [Repealed.]

History of Section. P.L. 1997, ch. 142, § 1; Repealed by P.L. 2017, ch. 18, § 1, effective June 19, 2017; P.L. 2017, ch. 31, § 1, effective June 19, 2017.

Compiler’s Notes.

Former § 39-1-60 concerned commingling.

39-1-61. Rhode Island telecommunications education access fund.

  1. Preamble.  For the past ten (10) years, the schools and libraries of Rhode Island have benefited from a regulatory agreement with Verizon and its predecessor companies that has provided up to two million dollars ($2,000,000) annually for support of telecommunications lines for internet access. In addition, the funds provided for in the original regulatory agreement and every dollar generated hereunder leverages a one dollar and twenty-seven cents ($1.27) federal E-Rate match. With the regulatory agreement approaching its termination and the advent of more advanced technologies, it is the intent of this section to provide a continued source of funding for internet access for eligible public and private schools and libraries.
  2. Definitions.  As used in this section, the following terms have the following meanings:
    1. “Department” means the Rhode Island department of elementary and secondary education.
    2. “Division” means the division of public utilities and carriers.
    3. “Telecommunications education access fund” means the programs and funding made available to qualified libraries and schools to assist in paying the costs of acquiring, installing, and using telecommunications technologies to access the internet.
  3. Purpose.  The purpose of the telecommunications education access fund shall be to fund a basic level of internet connectivity for all of the qualified schools (kindergarten through grade 12) and libraries in the state.
  4. Authority.  The division shall establish, by rule or regulation, an appropriate funding mechanism to recover from the general body of ratepayers the costs of providing telecommunications technology to access the internet.
    1. The general assembly shall determine the amount of a monthly surcharge to be levied upon each residence and business telephone access line or trunk in the state, including PBX trunks and centrex equivalent trunks and each service line or trunk, and upon each user interface number or extension number or similarly identifiable line, trunk, or path to or from a digital network. The department will provide the general assembly with information and recommendations regarding the necessary level of funding to effectuate the purposes of this section. The surcharge shall be billed by each telecommunications services provider and shall be payable to the telecommunications services provider by the subscriber of the telecommunications services. State, local, and quasi-governmental agencies shall be exempt from the surcharge. The surcharge shall be deposited in a restricted-receipt account, hereby created within the department of elementary and secondary education and known as the telecommunications education access fund, to pay any and all costs associated with subsection (b)(3). The amount of the surcharge shall not exceed thirty-five cents ($.35) per access line or trunk.
    2. The surcharge is hereby determined to be twenty-six cents ($.26) per access line or trunk.
    3. The amount of the surcharge shall not be subject to the sales and use tax imposed under chapter 18 of title 44 nor be included within the gross earnings of the telecommunications corporation providing telecommunications service for the purpose of computing the tax under chapter 13 of title 44.
  5. Administration.  The division, with input from the department, shall administer the telecommunications education access fund consistent with the requirements of the Universal Service (E-Rate) program. The division of taxation shall collect from the telecommunications service providers the amounts of the surcharge collected from their subscribers. The department, with the approval of the division, shall publish requests for proposals that do not favor any particular technology, evaluate competitive bids, and select products and services that best serve the internet access needs of schools and libraries. In doing so, the department shall endeavor to obtain all available E-Rate matching funds. The department is further authorized and encouraged to seek matching funds from all local, state, and federal public or private entities. The department shall approve disbursement of funds under this section in accordance with the division’s directives. Unsuccessful bids may be appealed to the division. The division shall annually review the department’s disbursements from this account to ensure that the department’s decisions do not favor any competitor.
  6. Eligibility.  All schools seeking support from the fund must be eligible for Universal Service (E-Rate) support and meet the definition of “elementary school” or “secondary school” in the Elementary and Secondary Education Act of 1965, as amended (20 U.S.C. § 8801). Schools operating as a for-profit business or with endowments exceeding fifty million dollars ($50,000,000) are not eligible for support. All libraries seeking support from the fund must meet the definition of “library” or “library consortium” in the Library Services and Technology Act, Pub. L. No. 104-208, § 211 et seq., 110 Stat. 3009 (1996) and must be eligible for assistance from a state library administrative agency under that act. Only libraries that have budgets that are completely separate from any schools (including, but not limited to, elementary and secondary, colleges and universities) shall be eligible to receive support. Libraries operating as a for-profit business shall not be eligible for support.
  7. Effective date.  The effective date of assessment for the telecommunications education access fund shall be January 1, 2004.

History of Section. P.L. 2003, ch. 376, art. 40, § 1; P.L. 2004, ch. 595, art. 31, § 1; P.L. 2006, ch. 246, art. 4, § 2; P.L. 2020, ch. 79, art. 1, § 2.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

Federal Act References.

20 U.S.C. § 8801, referred to in subsection (f) of this section, has been repealed. For current comparable provisions, see 20 U.S.C. § 7801.

The Library Services and Technology Act, referred to in subsection (f), was enacted by Pub. L. No. 104-208, § 101(e), 110 Stat. 3009-295 (1996), and is codified primarily as 20 U.S.C. § 9121 et seq. The definitions of “library” and “library consortium” may be found in 20 U.S.C. § 9122.

39-1-62. [Repealed.]

History of Section. P.L. 2004, ch. 595, art. 31, § 2; P.L. 2005, ch. 365, § 1; P.L. 2006, ch. 246, art. 4, § 3; P.L. 2007, ch. 73, art. 4, § 1; P.L. 2010, ch. 23, art. 9, § 10; P.L. 2018, ch. 47, art. 7, § 8; Repealed by P.L. 2019, ch. 88, art. 2, § 7, effective October 1, 2019.

Compiler’s Notes.

Former § 39-1-62 concerned the geographic information system (GIS) and technology fund.

Chapter 1.1 Termination of Service to Persons Who Are Disabled, Seriously Ill, or in Arrears of Payment

39-1.1-1. Compliance with rules prior to termination.

  1. No public utility that distributes electricity or supplies natural or manufactured gas, electric, or water service shall terminate service to any household in which all adult residents are sixty-five (65) years of age or older, or where any resident is disabled or seriously ill, for failure to pay an outstanding indebtedness for service, without first complying with all rules and regulations for such terminations issued by the commission.
  2. A natural gas distribution company or an electric distribution company as defined in § 39-1-2(a)(12) , but not including the Block Island Power Company or the Pascoag Utility District, shall not shut off service to a household eligible for LIHEAP if the customer’s outstanding bill is three hundred dollars ($300) or less and not more than two (2) months in arrears. Service may not be terminated unless two (2) notices of termination have been sent.

History of Section. P.L. 1979, ch. 410, art. 5, § 1; P.L. 1996, ch. 316, § 1; P.L. 1999, ch. 83, § 87; P.L. 1999, ch. 130, § 87; P.L. 2011, ch. 382, § 5; P.L. 2011, ch. 404, § 5.

Cross References.

Arrearage forgiveness plan for LIHEAP customers, § 39-2-1(d) .

39-1.1-2. Determination of persons subject to nontermination.

  1. The commission shall promulgate appropriate rules and regulations to determine which persons who are elderly, disabled, or seriously ill are subject to the nontermination provisions of § 39-1.1-1 , and in what manner relief will be made available to the subject persons.
  2. Rules and regulations maintained to determine which persons are seriously ill shall include the provision that said determination shall be through certification to the public utility or to the division of public utilities and carriers by a licensed physician.
    1. A licensed physician’s certification of serious illness shall be sufficient if initially made by telephone. In such event, the public utility or the division, whichever received initial certification, shall inform the certifying physician that he or she must forward to the public utility within seven (7) days a written certification indicating the name and address of the seriously ill person, the nature of the illness, and its likely duration. The public utility shall acknowledge receipt of such written certification and shall notify the customer in writing of the date upon which service will be terminated, unless the customer: (i) Has arranged for payment of an outstanding amount with the public utility, pursuant to rules and regulations promulgated by the commission; (ii) Requests a hearing, pursuant to rules and regulations promulgated by the commission; or (iii) Enrolls in a residential payment plan or other payment arrangement. The termination date shall be not less than three (3) weeks from receipt by the public utility of the written certification. If the duration of the illness exceeds three (3) weeks from the certification to the public utility, the customer may request a review pursuant to rules and regulations promulgated by the commission, to determine whether the initial exemption shall continue, for how long, and under what circumstances.
    2. A public utility must honor a licensed physician’s certification of serious illness, but may seek division review of the validity of the certification, pursuant to rules and regulations promulgated by the commission. If a licensed physician’s certification does not comply with the requirements promulgated by the commission and is rejected by a public utility, the public utility shall inform the customer immediately, in writing, of the reasons for rejection of the certification and the customer’s right to have the division review the utility’s rejection of the certification.
    3. Nontermination for any reason does not, in any way, relieve the customer of liability incurred for utility services.

History of Section. P.L. 1979, ch. 410, art. 5, § 1; P.L. 1999, ch. 83, § 87; P.L. 1999, ch. 130, § 87; P.L. 2011, ch. 382, § 5; P.L. 2011, ch. 404, § 5.

Cross References.

Adoption of administrative rules and regulations, § 42-35-1 et seq.

39-1.1-2.1. Termination of service in residence where child domiciled.

No gas or electric company shall terminate gas or electric service in any residence in which there is domiciled a person under the age of two (2) years and the customer’s service has not been previously shut off for nonpayment before the birth of the child; provided, that the customer cannot afford to pay any overdue bill because of financial hardship. The commission shall promulgate such rules and regulations consistent with this section as it deems reasonable and necessary to implement the provisions of this section. The rules shall, as a minimum, require certification of the infancy by birth certificate or other verifiable certification and that the certification of infancy shall remain in effect without renewal until the child reaches the age of two (2) years.

History of Section. P.L. 2007, ch. 297, § 1; P.L. 2007, ch. 419, § 1; P.L. 2008, ch. 431, § 1; P.L. 2008, ch. 445, § 1.

39-1.1-3. Attempt to collect debt.

The commission shall promulgate rules and regulations as are necessary to ensure that termination of utility service for outstanding indebtedness shall be authorized only after the utility has complied with reasonable methods of debt collection as defined by the division.

In promulgating the rules and regulations, the commission shall confer with the retail electric licensing commission and shall give reasonable consideration to any and all recommendations of the retail electric licensing commission.

History of Section. P.L. 1979, ch. 410, art. 5, § 1; P.L. 1997, ch. 357, § 2.

Compiler’s Notes.

The Retail Electric Licensing Commission, referred to in this section, was established in 1996 by § 39-1-27.2 , which provided that the commission would expire April 30, 1997. Section 39-1-27.2 was repealed by P.L. 2006, ch. 216, § 10.

Cross References.

Adoption of administrative rules and regulations, § 42-35-1 et seq.

39-1.1-4. Effect on existing rules.

Nothing in this chapter is intended to modify any existing or proposed rules and regulations dealing with utility termination during winter months as defined by the commission. Nothing in this chapter is intended to modify any existing or proposed rules and regulations dealing with termination of telephone service.

History of Section. P.L. 1979, ch. 410, art. 5, § 1.

39-1.1-5. Severability.

If any provision of this chapter or the application thereof to any person or circumstance is held invalid, its invalidity does not affect other provisions or applications of the chapter that can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable.

History of Section. P.L. 1979, ch. 410, art. 8, § 1.

Chapter 1.2 Excavation near Underground Utility Facilities

39-1.2-1. Definitions.

As used in this chapter:

  1. “Abandoned utility facilities” means any known underground or submerged utility line or facility that has been permanently taken out of service. For excavation purposes, the abandoned underground utility facilities should always be considered to be active utility service.
  2. “Administrator” means the administrator of the division of public utilities and carriers.
  3. “Approximate location of underground facilities” means a strip of land extending not more than one and one-half feet (1.5’) on either side of the underground facilities.
  4. “Association” means the group of public utilities formed pursuant to § 39-1.2-4 for the purpose of receiving and giving notice of excavation activity within the state.
  5. “Damage” means and includes, but is not limited to, the substantial weakening of structural or lateral support of a utility line; penetration or destruction of any utility line protective coating, housing, or other protective device; or the severance, partial or complete, of any utility line.
  6. “Demolition” means the wrecking, razing, rending, moving, or removing of any structure.
  7. “Excavation” means an operation for the purpose of movement or removal of earth, rock, or other materials in or on the ground, or otherwise disturbing the subsurface of the earth, by the use of powered or mechanized equipment, including, but not limited to: digging, blasting, auguring, back filling, test boring, drilling, pile driving, grading, plowing in, hammering, pulling in, trenching, and tunneling; excluding the movement of earth by tools manipulated only by human or animal power and the tilling of soil for agricultural purposes.
  8. “Governing authority” means the permit-issuing authority.
  9. “Immediate danger to life and health” means likely to cause death or immediate or delayed permanent adverse health effects or prevent escape from such an environment.
  10. “Inactive utility facilities” means any underground or submerged utility facilities line or facility that has been temporarily taken out of service with the expectation of becoming usable in the future.
  11. “Person” means an individual, partnership, corporation, association, or a public utility, including a person engaged as a contractor by a public agency and including a public agency.
  12. “Public agency” means the state or any political subdivision thereof, including any governmental agency.
  13. “Public utility” means the owner or operator of underground facilities for furnishing electric, gas, telephone, or water service as defined in § 39-1-2(a)(20) ; and also means and includes, for the purposes of this chapter only, electric transmission companies and nonregulated power producers, as defined in § 39-1-2(a)(13) and (19); any cable television service; and any water company that voluntarily becomes a member of the association provided for under § 39-1.2-4 .
  14. “Public utility facilities” means the underground plant and equipment owned and operated by a public utility for the purpose of furnishing electricity, gas, water, cable television, or telephone service; including the underground plant and equipment owned and operated by any water company, not subject to regulation by the administrator of the division of the public utilities, that voluntarily joins the association provided for under § 39-1.2-4 . Utility facilities shall include active, newly installed, and inactive or abandoned utility facilities.

History of Section. P.L. 1984, ch. 119, § 1; P.L. 1995, ch. 327, § 1; P.L. 1996, ch. 345, § 1; P.L. 1998, ch. 367, § 1; P.L. 2009, ch. 92, § 1; P.L. 2009, ch. 103, § 1; P.L. 2017, ch. 83, § 1; P.L. 2017, ch. 91, § 1.

Comparative Legislation.

Excavation near utilities:

Mass. Ann. Laws ch. 166, § 22H.

39-1.2-1.1. Findings.

The general assembly finds and declares that:

  1. Safety and the need for an effective damage-prevention program for underground utility facilities should include participation from all stakeholders including excavators and utility companies;
  2. To develop a process for fostering and promoting the use of an effective damage-prevention program, by all appropriate stakeholders, technologies need to be improved that enhance communications, underground pipeline-locating capability, and gathering and analyzing information about the accuracy and effectiveness of underground facility-locating programs;
  3. Many public, private, and municipal utilities are located underground, including, but not limited to, gas, water, electric, cable television, telephone, and sewers. Excavation in the vicinity of these utilities can be dangerous and the utilities should be marked appropriately to avoid damage, injury, or public emergency; and
  4. All utilities, whether public, private, or municipal, should strongly consider participation in the utility damage-prevention program known as Dig Safe System, Inc. to ensure the highest level of safety and awareness of utility facility locations.

History of Section. P.L. 2009, ch. 92, § 2; P.L. 2009, ch. 103, § 2.

39-1.2-2. Excavation or demolition near public utility.

No person, public agency, or public utility shall engage in excavation in the approximate location of public utility facilities or discharge explosives or demolish a structure containing a public utility facility without having first ascertained in the manner prescribed in this chapter the location of all public utility facilities or public utilities in the area or the absence thereof.

History of Section. P.L. 1984, ch. 119, § 1; P.L. 1998, ch. 367, § 1.

39-1.2-3. Annual report by public utilities.

All public utilities of the state, owning and operating underground facilities, shall file annually, with the administrator, a report setting forth the total mileage of underground facilities, excluding service connections, including the title, address, and telephone number of its representatives designated to receive the notice required by § 39-1.2-5 .

History of Section. P.L. 1984, ch. 119, § 1; P.L. 1998, ch. 367, § 1.

39-1.2-4. Public utilities association — Creation.

All public utilities of the state, owning and operating underground facilities, shall, with the assistance of the administrator, jointly participate in an association providing for mutual receipt of notification required by §§ 39-1.2-2 and 39-1.2-5 . The cost of the operation of the association shall be apportioned equitably among all public utilities whose underground facilities are registered with the administrator.

History of Section. P.L. 1984, ch. 119, § 1; P.L. 1998, ch. 367, § 1.

39-1.2-5. Notice of excavation.

  1. Except as provided in § 39-1.2-9 , any person, public agency, or public utility responsible for excavating within one hundred feet (100´) or for discharging explosives within one hundred feet (100´) of a public utility facility shall notify the association of the proposed excavation or discharge at least seventy-two (72) hours, excluding Saturdays, Sundays, and holidays, but not more than thirty (30) days before commencing the excavation or discharge of explosives. Actual excavation must thereupon commence within thirty (30) days. Each public utility shall, upon receipt of each notice of excavation, mark within seventy-two (72) hours or, where applicable in accordance with § 39-1.2-12 , re-mark within forty-eight (48) hours, the location of all underground facilities.
  2. Each excavator shall provide a description of the excavation location that shall include:
    1. The name of the city or town where the excavation will take place;
    2. The name of the street, way, or route number where appropriate;
    3. The name of the streets at the nearest intersection to the excavation;
    4. The numbered address of buildings closest to the excavation; and
    5. Any other description that will accurately define the excavation location, including landmarks and utility pole numbers.
  3. If an excavator determines that a public utility facility has been mismarked, the excavator may notify the association and the appropriate public utility shall re-mark no later than three (3) hours after receipt of notification from the association. The failure to mark or re-mark the location of all underground facilities upon each notice of excavation shall constitute a separate violation of this chapter. Where an excavation is to be made by a contractor as part of the work required by a contract with the state or with any political subdivision thereof or other public agency for the construction, reconstruction, relocation, or improvement of a public way or for the installation of a railway track, conduit, sewer, or water main, the contractor shall be deemed to have complied with the requirements of this section by giving one such notice to the association as required by this section, except when unanticipated obstructions are encountered, setting forth the location and the approximate time required to perform the work involved. In addition, the initial notice shall indicate whether the excavation is anticipated to involve blasting and, if so, the date on which and specific location at which the blasting is to occur. If after the commencement of an excavation it is found there is an unanticipated obstruction requiring blasting, the excavator shall give at least four (4) hours’ notice to the association before commencing the blasting. When demolition of a building containing a public utility facility is proposed, the public utility or utilities involved will be given written notice by registered mail at least ten (10) days prior to the commencement of the demolition of the building. All notices shall include the name, address, and telephone number of the entity giving notice; the name of the person, public agency, or public utility performing the work; and the commencement date and proposed type of excavation, demolition, or discharge of explosives. The association shall immediately transmit the information to the public utilities whose facilities may be affected. An adequate record shall be maintained by the association to document compliance with the requirements of this chapter.

History of Section. P.L. 1984, ch. 119, § 1; P.L. 1990, ch. 182, § 1; P.L. 1998, ch. 367, § 1; P.L. 2009, ch. 92, § 1; P.L. 2009, ch. 103, § 1; P.L. 2014, ch. 97, § 1; P.L. 2014, ch. 128, § 1; P.L. 2016, ch. 512, art. 1, § 25; P.L. 2017, ch. 83, § 1; P.L. 2017, ch. 91, § 1.

39-1.2-6. Compliance by public agencies.

Any permit issued by a public agency for excavation, demolition, or the discharge of explosives shall be issued in compliance with this chapter.

History of Section. P.L. 1984, ch. 119, § 1.

39-1.2-7. Marking of underground utilities and excavations.

  1. A public utility served with the notice in accordance with § 39-1.2-5 shall, within seventy-two (72) hours, exclusive of Saturdays, Sundays, and legal holidays, of the receipt of the notice, unless otherwise agreed between the person or public agency performing the work and the public utility, mark the approximate location of the underground utility facilities.
  2. Prior to notifying the association, any excavator must premark the area of proposed excavation in a manner that will enable the owner of the public utility facilities to identify the boundaries of the proposed excavation activities, except that premarking shall not be required if the proposed excavation will be continuous and exceed five hundred feet (500´) in length, or if such marks may reasonably interfere with traffic or pedestrian control or are misleading to the general public.
  3. A public utility shall mark any of its underground utility facilities that are located within fifteen feet (15´) of the exterior limits of the premarked excavation area.
  4. For the purposes of this chapter, the approximate location of underground utility facilities shall be marked with stakes, paint, or other physical means as may be necessary to ensure a distinctive mark. The public utility shall follow the color coding prescribed in this section.
  5. In the event the excavator shall damage the underground public utility facilities as the result of an incorrect marking by the public utility, the excavator shall not be responsible for the resulting damage.

UTILITY AND TYPE OF PRODUCTSPECIFIC GROUP IDENTIFYING COLOR Electric power distribution and transmission Safety Red State and municipal electric systems Safety Red Gas distribution and transmission High Visibility Safety Yellow Dangerous materials, product line High Visibility Safety Yellow Telephone and telegraph systems Safety Alert Orange Water systems Safety Precaution Blue Cable antenna television Safety Alert Orange Premark White

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History of Section. P.L. 1984, ch. 119, § 1; P.L. 1995, ch. 327, § 1; P.L. 1997, ch. 326, § 104; P.L. 2009, ch. 92, § 1; P.L. 2009, ch. 103, § 1.

39-1.2-8. Notice in emergency.

  1. In the event of any emergency posing a threat to life, public health, public safety, or property, or that may require immediate correction in order to continue the operation of a major industrial plant, or to ensure the continuity of public utility service, excavation, maintenance, or repairs may be made without using explosives upon notice and advice thereof given to the association as soon as it is determined that an emergency exists. The excavator shall thereafter employ any means necessary, excluding blasting, to ensure that the underground public utility facilities in the area of the excavation shall not be damaged.
  2. In the event of an emergency, public utilities shall notify the excavator, at the telephone number provided to the association by the excavator, within two (2) hours upon receipt of notice as to whether the public utility has any facilities in the vicinity of the proposed excavation. If the public utility has any facilities in the vicinity of the proposed excavation, the public utility shall mark out its facilities no later than three (3) hours after receipt of notice from the association.

History of Section. P.L. 1984, ch. 119, § 1; P.L. 1998, ch. 367, § 1; P.L. 2009, ch. 92, § 1; P.L. 2009, ch. 103, § 1.

39-1.2-9. Municipal ordinances.

This chapter shall not be construed to authorize, affect, or impair local ordinances, charters of other provisions of law requiring permits to be obtained before excavating or tunneling in a public street or highway, or to construct or demolish buildings or other structures on private property, nor construed to grant any person or public agency any rights not specifically provided by this chapter. A permit issued by a public agency shall not be deemed to relieve a person from the responsibility for complying with the provisions of this chapter. The failure of any person, who or that has been granted a permit, to comply with the provisions of this chapter, shall not be deemed to impose any liability upon the public agency issuing the permit. Any disagreement between a public utility company and a person shall be referred to the administrator whose order shall be binding upon the parties.

History of Section. P.L. 1984, ch. 119, § 1; P.L. 1998, ch. 367, § 1.

39-1.2-10. Procedures at work site.

Any person or public agency excavating, tunneling, or discharging explosives shall exercise reasonable care when working in close proximity to the underground public utility facilities of any public utility. Further, when the facilities are to be exposed, only nonmechanical means shall be employed to locate the facility and such support, as may be reasonably necessary for the protection of the facilities, shall be provided in and near the work area.

History of Section. P.L. 1984, ch. 119, § 1; P.L. 1998, ch. 367, § 1.

39-1.2-11. Damage — Notice to public utility.

  1. Upon the occurrence of any contact with, or damage to, any pipe, cable, or its protective coating, or any other underground facility of a public utility, the appropriate and/or affected public utility shall be notified immediately by the person or public agency responsible for the operation causing the contact or damage prior to backfilling the excavation. Upon the receipt of the notice, the public utility shall immediately dispatch personnel to the subject location to effect temporary or permanent repair of the damage. Under no circumstances shall the excavator backfill or conceal the damaged area until the public utility arrives at the subject location. Upon the occurrence of a serious electrical short, or the escape of dangerous fluids or gases from a broken line, the person or public agency responsible for the operations causing the damage shall call 911 if the damage presents an immediate danger to life and health of employees or pedestrians in the surrounding area. In the event of an immediate danger to life and health occurrence, the area shall be evacuated until proper emergency services arrive.
  2. Any person, public agency, or public utility shall report all suspected violations of this chapter to the division of public utilities and carriers within thirty (30) days after learning of the circumstances constituting the suspected violation.

History of Section. P.L. 1984, ch. 119, § 1; P.L. 1998, ch. 367, § 1; P.L. 2014, ch. 97, § 1; P.L. 2014, ch. 128, § 1; P.L. 2017, ch. 83, § 1; P.L. 2017, ch. 91, § 1.

Collateral References.

Liability of one excavating on private property for injury to public utility cables, conduits, or the like. 28 A.L.R.5th 603.

39-1.2-12. Maintenance of utility markings.

After a public utility has marked its underground facilities in accordance with the provisions of § 39-1.2-7 , the excavator shall be responsible for maintenance of the designated markings. In the event the markings are obliterated, destroyed, or removed, the utility shall, within forty-eight (48) hours following the receipt of a request, re-mark the location of its facilities.

History of Section. P.L. 1984, ch. 119, § 1; P.L. 2009, ch. 92, § 1; P.L. 2009, ch. 103, § 1.

39-1.2-13. Penalties.

  1. Any person or utility who or that violates any provision of this chapter shall be subject to a civil penalty of no more than three hundred fifty dollars ($350) for the first offense and not less than five hundred dollars ($500) nor more than two thousand five hundred dollars ($2,500) for any subsequent offense within a twelve-month (12) period. The administrator of the division of public utilities and carriers shall assess the civil penalty against the person or utility who or that is determined to have committed the violation. All penalties recovered shall be paid into the general fund of the state. This chapter shall not be construed to affect any civil remedies for personal injury or property damage (including underground utilities), except as otherwise specifically provided for in this chapter.
  2. Any contractor found in violation of this chapter that, after due process of law, fails to satisfy any such fines levied pursuant to this chapter shall be ineligible to bid on or be awarded any municipal, quasi-municipal, state, state-funded, state-regulated or state-subsidized construction and/or public works contracts.

History of Section. P.L. 1984, ch. 119, § 1; P.L. 1995, ch. 317, § 1; P.L. 1996, ch. 345, § 1; P.L. 1998, ch. 367, § 1; P.L. 2009, ch. 92, § 1; P.L. 2009, ch. 103, § 1.

39-1.2-13.1. Powers of administrator.

In enforcing the provisions of this chapter with respect to persons who or that are not public utilities, the administrator may:

  1. Conduct an investigation in connection with violations involving the excavation or demolition of public utility facilities; and
  2. For purposes of an investigation permitted under this section, require any person, which for purposes of this section only may be defined to include an individual, partnership, corporation, association or agent thereof, involved in the excavation or demolition of a public utility facility to appear at such time and place as the administrator may designate, then and there under oath to produce for the use of the administrator any and all documents and other such information relating directly to the incident as the administrator may require; and
  3. Require the attendance of any person as provided in this section, provided however that the administrator shall issue a notice setting the time and place when the attendance is required and shall cause the notice to be delivered or sent by registered or certified mail to the person at least fourteen (14) days before the date fixed in the notice for the attendance. In the event that any person fails to receive or accept notice by mail or fails to produce information requested, the administrator is empowered to issue a subpoena in a manner consistent with § 39-1-13 . If any person receiving notice pursuant to this provision neglects to attend or remain in attendance so long as may be necessary for the purposes which the notice was issued, or refuses to produce information requested, any justice of the Superior Court for the county within which the inquiry is carried on or within which the person resides or transacts business, upon application of either the administrator or the person subject to the notice, shall have jurisdiction to hear and consider on an expedited basis the request and if deemed necessary and relevant to the consideration of the incident at issue, may issue an appropriate order. Any failure to obey the order of the superior court may be punished by the court as contempt thereof. The administrator may, after notice and opportunity for a fair and prompt hearing, and a finding that the person was in whole or in part responsible for the incident based upon clear and convincing evidence, impose a penalty or fine not in excess of penalties set forth in § 39-1.2-13 . This section shall not limit or affect any powers conferred upon the administrator pursuant to this title as such powers relate to public utility companies or agents thereof.

History of Section. P.L. 1998, ch. 367, § 2.

39-1.2-14. Severability.

If any provision of this chapter or the applicability thereof to any person or circumstance is held invalid, the remainder of the chapter and the application of the provision to other persons or circumstances shall not be affected thereby.

History of Section. P.L. 1984, ch. 119, § 1.

Chapter 2 Duties of Utilities and Carriers

39-2-1. Reasonable and adequate services — Reasonable and just charges.

  1. Every public utility is required to furnish safe, reasonable, and adequate services and facilities. The rate, toll, or charge, or any joint rate made, exacted, demanded, or collected by any public utility for the conveyance or transportation of any persons or property, including sewage, between points within the state; or for any heat, light, water, or power produced, transmitted, distributed, delivered, or furnished; or for any telephone or telegraph message conveyed; or for any service rendered or to be rendered in connection therewith, shall be reasonable and just, and every unjust or unreasonable charge for the service is prohibited and declared unlawful, and no public utility providing heat, light, water, or power produced, transmitted, distributed, delivered, or furnished shall terminate the service or deprive any home or building, or whatsoever, of service if the reason therefor is nonpayment of the service without first notifying the user of the service, or the owner, or owners, of the building as recorded with the utility of the impending service termination by written notice at least ten (10) days prior to the effective date of the proposed termination of service.
    1. Effective immediately, following the issuance of a decision by the commission under § 39-1-27.12(d) , the utility shall collect a LIHEAP enhancement charge from all utility customers for the funding of the LIHEAP Enhancement Fund.
  2. Any existing rules and regulations dealing with the termination of utility service and establishing reasonable methods of debt collection promulgated by the commission pursuant to this chapter and the provisions of § 39-1.1-3 including, but not limited to, any rules and regulations dealing with deposit and deferred-payment arrangements, winter moratorium and medical emergency protections, and customer dispute resolution procedures, shall be applicable to any public utility that distributes electricity.
  3. The commission shall promulgate such further rules and regulations as are necessary to protect consumers following the introduction of competition in the electric industry and that are consistent with this chapter and the provisions of § 39-1.1-3 . In promulgating the rules and regulations, the commission shall confer with the retail electric licensing commission and shall give reasonable consideration to any and all recommendations of the retail electric licensing commission.
    1. On or before August 15, 2011, the commission shall administer the rules and regulations, as may be necessary, to implement the purpose of subsection (d)(2) of this section and to provide for the restoration of electric and/or gas service to Low Income Home Energy Assistance Program (LIHEAP)-eligible households, as this eligibility is defined in the current LIHEAP state plan for Rhode Island filed with the U.S. Department of Health and Human Services.
    2. Effective no later than September 1, 2016, notwithstanding the provisions of part V sections 4(E)(1)(B) and (C) of the public utilities commission rules and regulations governing the termination of residential electric, gas, and water utility service, a LIHEAP-eligible customer, as defined above in this section, who has been terminated from gas and/or electric service or is recognized, pursuant to a rule or decision by the division, as being scheduled for actual shutoff of service on a specific date, shall not be deprived electric and/or gas utility service provided the following conditions are met:
      1. The customer has an account balance of at least three hundred dollars ($300) that is more than sixty (60) days past due;
      2. The customer is eligible for the federal Low Income Home Energy Assistance Program and the account is enrolled in the utility low-income rate if offered;
      3. If utility service has been terminated, the customer shall make an initial payment of twenty-five percent (25%) of the unpaid balance, unless the commission has enacted emergency regulations in which case the customer shall pay the down payment required by the emergency regulations;
      4. The customer agrees to participate in energy efficiency programs;
      5. The customer applies for other available energy-assistance programs, including fuel assistance and weatherization;
      6. The customer agrees to make at least twelve (12) monthly payments in an amount determined by the utility and based on the customer’s average monthly usage of the previous year, and the customer’s actual or anticipated fuel assistance, if known. The electric- and/or gas-utility company shall review the payment plan every three (3) months and may adjust the plan based on the following: the amount of or change in fuel assistance; the customer moves; actual usage differs from estimated usage; and/or significant changes in the company’s energy costs or rates from the time of anticipated enrollment;
      7. With each payment, a portion of the customer’s outstanding account balance shall be forgiven in an amount equal to the total past-due balance divided by the number of months in the customer agreement;
      8. Up to one thousand five hundred dollars ($1,500) shall be forgiven in a twelve-month (12) period. If the outstanding account balance is greater than one thousand five hundred dollars ($1,500), the length of the agreement may, at the request of the customer, be extended for more than twelve (12) months to accommodate the total outstanding balance, provided that the customer is current with payments at the conclusion of the previous twelve-month (12) period;
      9. The customer agrees to remain current with payments. For purposes of this subsection, remaining current shall mean that the customer: (A) Misses no more than two (2) payments in a twelve-month (12) period covered by the agreement; and (B) That the amount due under the agreement is paid in full, by the conclusion of the twelve-month (12) period of the agreement;
      10. Failure to comply with the payment provisions set forth in this subsection shall be grounds for the customer to be removed from the repayment program established by this subsection and the balance due on the unpaid balance shall be due and payable in full, in accordance with the rules of the commission governing the termination of residential electric, gas, and water utility service, provided, that any arrearage already forgiven under subsection (d)(2)(vii) of this section shall remain forgiven and be written off by the utility. The amount of the arrearage, so forgiven, shall be recovered by the electric and/or gas company through an annual reconciling factor approved by the commission;
      11. The commission may promulgate rules and regulations to implement this section that ensure efficient administration of the program in a nondiscriminatory manner consistent with the goal of providing assistance to customers who are willing and able to meet their obligations to the utility under this program;
      12. Each public utility that provides gas or electric service to residential ratepayers shall file tariffs implementing the requirements of this section on a date to be determined by the commission which shall allow for the program to be in place no later than October 1, 2016;
      13. After two (2) years from the date of completion of the plan or removal from the plan for failure to remain current with payments and upon recommendation from a community action partnership agency, a customer shall be eligible to enroll in a subsequent arrearage forgiveness plan; and
      14. A customer, who completes the schedule of payments pursuant to this subsection, shall have the balance of any arrearage forgiven, and the customer’s obligation to the gas and/or electric company for such unpaid balance shall be deemed to be fully satisfied. The amount of the arrearage, so forgiven, shall be treated as bad debt for purposes of cost recovery by the gas or the electric company up to the amount allowed in the gas and/or electric company’s most recent general rate filing. In the event the gas or electric company’s bad debt for a calendar year exceeds the amount allowed in the most recent general-rate filing for the same period, the gas or electric company shall be entitled to recovery of those write-offs that were the result of the arrearage forgiveness plan set forth in this section.
    3. A customer terminated from service under the provisions of subsection (d)(1) or (d)(2) shall be eligible for restoration of service in accordance with the applicable provisions of part V section 4(E)(1)(C), or its successor provision, of the public utilities commission rules and regulations governing the termination of residential electric, gas, and water service.
  4. The commission shall complete a comprehensive review of all utility and energy-related programs and policies impacting protected classes and low-income ratepayers. In conducting its review, the commission shall consult with the division, the attorney general, the utility, the department of human services, the ratepayers advisory board established by § 39-1-37.1 , community-based organizations, a homeless advisory group, and community action agencies, each of whom shall cooperate with meetings scheduled by the commission and any requests for information received by the commission by providing responses within twenty-one (21) days from issuance. The commission shall submit a report of its findings and recommendations to the governor and the general assembly no later than November 1, 2018. No later than November 15, 2017, and annually thereafter, the commission shall submit to the governor, the senate president, and the speaker of the house a report on the effectiveness of the customer arrearage program which shall include a cost-benefit analysis and recommendations to improve the effectiveness of the arrearage program.

History of Section. P.L. 1912, ch. 795, § 38; G.L. 1923, ch. 253, § 38; G.L. 1938, ch. 122, § 35; G.L. 1956, § 39-2-1 ; P.L. 1968, ch. 293, § 1; P.L. 1971, ch. 265, § 3; P.L. 1972, ch. 205, § 3; P.L. 1983, ch. 235, § 3; P.L. 1996, ch. 316, § 1; P.L. 1997, ch. 357, § 3; P.L. 2005, ch. 182, § 1; P.L. 2005, ch. 438, § 1; P.L. 2006, ch. 216, § 11; P.L. 2006, ch. 236, § 7; P.L. 2006, ch. 237, § 7; P.L. 2007, ch. 51, § 2; P.L. 2007, ch. 66, § 2; P.L. 2011, ch. 382, § 6; P.L. 2011, ch. 404, § 6; P.L. 2016, ch. 101, § 1; P.L. 2016, ch. 108, § 1; P.L. 2016, ch. 125, § 2; P.L. 2016, ch. 137, § 2; P.L. 2017, ch. 451, § 16; P.L. 2020, ch. 79, art. 1, § 3.

Compiler’s Notes.

P.L. 2005, ch. 182, § 2, and P.L. 2005, ch. 438, § 2, provide that the amendment to this section by those acts takes effect upon passage [July 6, 2005, and July 20, 2005] and expires on November 1, 2006.

The Retail Electric Licensing Commission, referred to in subsection (c) of this section, was established in 1996 by § 39-1-27.2 , which provided that the commission would expire April 30, 1997. Section 39-1-27.2 was repealed by P.L. 2006, ch. 216, § 10.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

Cross References.

Definitions, § 39-1-2 .

Discriminatory practices as to accommodations prohibited, § 11-24-1 et seq.

Functions of department of business regulations, § 42-14-2 .

Comparative Legislation.

Duties of public utilities and carriers generally:

Conn. Gen. Stat. § 16-1 et seq.

Mass. Ann. Laws ch. 25, § 1 et seq.; ch. 159, § 1 et seq.

NOTES TO DECISIONS

Discontinuance of Service.

While the division of public utilities may permit discontinuance of railroad stops or discontinuance of certain train runs where there is little or no demand for service, it has no power to authorize a railroad operating under a charter granted by the general assembly to entirely discontinue passenger service over all of its lines when there is a substantial demand for such service and the furnishing of substantial service by the railroad or its affiliate is not assured. Trustees of New York, N. H. & H. R.R. v. Division of Pub. Utils., 61 R.I. 449 , 1 A.2d 191, 1938 R.I. LEXIS 90 (1938).

Liability of Co-Owners of Utility Poles.

The hearing court erred in concluding that, although a telephone company was a co-owner of a utility pole situated on a public sidewalk, there was no duty imposed on that company to furnish safe facilities or warn of danger since the electric company which was the owner of an unprotected guy wire attached to the pole was solely liable for any damages. Moseley v. Fitzgerald, 773 A.2d 254, 2001 R.I. LEXIS 163 (2001).

Powers of Commission.

R.I. Gen. Laws § 39-2-1 focuses on ratemaking, not resale or regulation of resale obligations, and does not provide the Rhode Island Public Utilities Commission (PUC) with authority to order a telephone company to provide voice messaging service (VMS) to its competitors. Verizon New Eng. Inc. v. R.I. PUC, 822 A.2d 187, 2003 R.I. LEXIS 128 (2003).

Ratemaking.

There is no statute in this state and no decision of this court which requires the public utilities administrator to use any particular method in determining the fair value of property of a public utility for ratemaking purposes. Narragansett Elec. Co. v. Kennelly, 88 R.I. 56 , 143 A.2d 709, 1958 R.I. LEXIS 107 (1958).

A public utility administrator did not commit error in including in the rate base which he allowed in his report and order, property of the company which was used only at times in rendering water service to the town but still was an integral part of the water system, and also in his inclusion of a rate of return based on the money needed for capital improvements of which there was evidence of an immediate need. Jamestown v. Newton, 94 R.I. 115 , 178 A.2d 302, 1962 R.I. LEXIS 36 (1962).

Collateral References.

Charitable contributions by public utility as part of operating expense. 59 A.L.R.3d 941.

Construction and application of 7 U.S.C. § 1926(b), prohibiting curtailment or conditioning of water or sewer service based on inclusion within municipal borders. 146 A.L.R. Fed. 387.

Debtor’s protection under 11 U.S.C. § 366 against utility service cutoff. 83 A.L.R. Fed. 207.

Discontinuance of line or branch on ground that it is unprofitable. 10 A.L.R.2d 1121.

Discontinuance of service for unpaid charges notwithstanding existence of deposit. 43 A.L.R.2d 1272.

Discontinuing service, common service pipe, right to shut off one served by, for nonpayment of another. 19 A.L.R.3d 1227.

Electricity, gas, or water furnished by public utility as “goods” within provisions of U.C.C. Article 2 on Sales. 97 A.L.R.6th 1.

Incidental provision of transportation services, by party not primarily in that business, as common carriage subject to state regulatory control. 87 A.L.R.4th 638.

Liability of electric power or light company to patron for interruption, failure, or inadequacy of power. 4 A.L.R.3d 594.

Liability of owner or operator of premises for injury to meter reader or similar employee of public service corporation coming to premises in course of duties. 28 A.L.R.3d 1344.

Liability of telephone company to subscriber for failure or interruption of service. 67 A.L.R.3d 76.

Placement maintenance, or design of standing utility pole as affecting private utility’s liability for personal injury resulting from vehicle’s collision with pole within or beside highway. 51 A.L.R.4th 602.

Propriety of considering capital structure of utility’s parent company or subsidiary in setting utility’s rate of return. 80 A.L.R.4th 280.

Propriety of injunctive relief against diversion of water by municipal corporation or public utility. 42 A.L.R.3d 426.

Public utility’s right to recover cost of nuclear power plants abandoned before completion. 83 A.L.R.4th 183.

Racial or religious discrimination in furnishing of public utilities, services or facilities. 53 A.L.R.3d 1027.

Recoverability of compensatory damages for mental anguish or emotional distress for breach of service contract. 54 A.L.R.4th 901.

Right of municipality to refuse services provided by it to resident for failure of resident to pay for other unrelated services. 60 A.L.R.3d 714.

Right of public utility to deny service at one address because of failure to pay for past service rendered at another. 73 A.L.R.3d 1292.

Special requirements of consumer as giving rise to implied contract by public utility to furnish particular amount of electricity, gas, or water. 13 A.L.R.2d 1233.

Telephone company’s right to change subscriber’s telephone number. 75 A.L.R.3d 700.

Validity of “fuel adjustment” or similar clauses authorizing electric utility to pass on increased costs of fuel to its customers. 83 A.L.R.3d 933.

Water distributor’s liability for injury due to condition of service lines, meters and the like, which serve individual consumer. 20 A.L.R.3d 1363.

Water supply, right to cut off for failure to pay sewer service charge. 26 A.L.R.2d 1359.

39-2-1.1. Services to new occupants.

No public utility shall refuse to furnish services to new occupants at any premises on the grounds that the previous occupant has vacated the premises without paying the public utility for services furnished, provided that the service is not for the use or benefit of the previous occupant.

History of Section. P.L. 1976, ch. 219, § 1.

Collateral References.

Right of public utility to deny service at one address because of failure to pay for past service rendered at another. 73 A.L.R.3d 1292.

39-2-1.2. Utility base rate — Advertising, demand-side management, and renewables.

  1. In addition to costs prohibited in § 39-1-27.4(b) , no public utility distributing or providing heat, electricity, or water to or for the public shall include as part of its base rate any expenses for advertising, either direct or indirect, that promotes the use of its product or service, or is designed to promote the public image of the industry. No public utility may furnish support of any kind, direct or indirect, to any subsidiary, group, association, or individual for advertising and include the expense as part of its base rate. Nothing contained in this section shall be deemed as prohibiting the inclusion in the base rate of expenses incurred for advertising, informational or educational in nature, that is designed to promote public safety conservation of the public utility’s product or service. The public utilities commission shall promulgate such rules and regulations as are necessary to require public disclosure of all advertising expenses of any kind, direct or indirect, and to otherwise effectuate the provisions of this section.
  2. Effective as of January 1, 2008, and for a period of twenty (20) years thereafter, each electric distribution company shall include a charge per kilowatt-hour delivered to fund demand-side management programs. The 0.3 mills per kilowatt-hour delivered to fund renewable energy programs shall remain in effect until December 31, 2028. The electric distribution company shall establish and, after July 1, 2007, maintain, two (2) separate accounts, one for demand-side management programs (the “demand-side account”), which shall be funded by the electric demand-side charge and administered and implemented by the distribution company, subject to the regulatory reviewing authority of the commission, and one for renewable energy programs, which shall be administered by the Rhode Island commerce corporation pursuant to § 42-64-13.2 and shall be held and disbursed by the distribution company as directed by the Rhode Island commerce corporation for the purposes of developing, promoting, and supporting renewable energy programs. During the time periods established in this subsection, the commission may, in its discretion, after notice and public hearing, increase the sums for demand-side management and renewable resources. In addition, the commission shall, after notice and public hearing, determine the appropriate charge for these programs. The office of energy resources, and/or the administrator of the renewable energy programs, may seek to secure for the state an equitable and reasonable portion of renewable energy credits or certificates created by private projects funded through those programs. As used in this section, “renewable energy resources” shall mean: (1) Power generation technologies, as defined in § 39-26-5 , “eligible renewable energy resources,” including off-grid and on-grid generating technologies located in Rhode Island, as a priority; (2) Research and development activities in Rhode Island pertaining to eligible renewable energy resources and to other renewable energy technologies for electrical generation; or (3) Projects and activities directly related to implementing eligible renewable energy resources projects in Rhode Island. Technologies for converting solar energy for space heating or generating domestic hot water may also be funded through the renewable energy programs. Fuel cells may be considered an energy efficiency technology to be included in demand-side management programs. Special rates for low-income customers in effect as of August 7, 1996, shall be continued, and the costs of all of these discounts shall be included in the distribution rates charged to all other customers. Nothing in this section shall be construed as prohibiting an electric distribution company from offering any special rates or programs for low-income customers which are not in effect as of August 7, 1996, subject to the approval by the commission.
    1. The renewable energy investment programs shall be administered pursuant to rules established by the Rhode Island commerce corporation. Said rules shall provide transparent criteria to rank qualified renewable energy projects, giving consideration to:
      1. The feasibility of project completion;
      2. The anticipated amount of renewable energy the project will produce;
      3. The potential of the project to mitigate energy costs over the life of the project; and
      4. The estimated cost per kilowatt-hour (KWh) of the energy produced from the project.
  3. [Deleted by P.L. 2012, ch. 241, art. 4, § 14.]
  4. The chief executive officer of the commerce corporation is authorized and may enter into a contract with a contractor for the cost-effective administration of the renewable energy programs funded by this section. A competitive bid and contract award for administration of the renewable energy programs may occur every three (3) years and shall include, as a condition, that after July 1, 2008, the account for the renewable energy programs shall be maintained and administered by the commerce corporation as provided for in subsection (b) of this section.
  5. Effective January 1, 2007, and for a period of twenty-one (21) years thereafter, each gas distribution company shall include, with the approval of the commission, a charge per deca therm delivered to fund demand-side management programs (the “gas demand-side charge”), including, but not limited to, programs for cost-effective energy efficiency, energy conservation, combined heat and power systems, and weatherization services for low-income households.
  6. Each gas company shall establish a separate account for demand-side management programs (the “gas demand-side account”) that shall be funded by the gas demand-side charge and administered and implemented by the distribution company, subject to the regulatory reviewing authority of the commission. The commission may establish administrative mechanisms and procedures that are similar to those for electric demand-side management programs administered under the jurisdiction of the commission and that are designed to achieve cost-effectiveness and high, life-time savings of efficiency measures supported by the program.
  7. The commission may, if reasonable and feasible, except from this demand-side management charge:
    1. Gas used for distribution generation; and
    2. Gas used for the manufacturing processes, where the customer has established a self-directed program to invest in and achieve best-effective energy efficiency in accordance with a plan approved by the commission and subject to periodic review and approval by the commission, which plan shall require annual reporting of the amount invested and the return on investments in terms of gas savings.
  8. The commission may provide for the coordinated and/or integrated administration of electric and gas demand-side management programs in order to enhance the effectiveness of the programs. Such coordinated and/or integrated administration may after March 1, 2009, upon the recommendation of the office of energy resources, be through one or more third-party entities designated by the commission pursuant to a competitive selection process.
  9. Effective January 1, 2007, the commission shall allocate, from demand-side management gas and electric funds authorized pursuant to this section, an amount not to exceed three percent (3%) of such funds on an annual basis for the retention of expert consultants, and reasonable administration costs of the energy efficiency and resources management council associated with planning, management, and evaluation of energy-efficiency programs, renewable energy programs, system reliability least-cost procurement, and with regulatory proceedings, contested cases, and other actions pertaining to the purposes, powers, and duties of the council, which allocation may by mutual agreement, be used in coordination with the office of energy resources to support such activities.
  10. Effective January 1, 2016, the commission shall annually allocate from the administrative funding amount allocated in subsection (i) from the demand-side management program as described in subsection (i) as follows: forty percent (40%) for the purposes identified in subsection (i) and sixty percent (60%) annually to the office of energy resources for activities associated with planning, management, and evaluation of energy-efficiency programs, renewable energy programs, system reliability, least-cost procurement, and with regulatory proceedings, contested cases, and other actions pertaining to the purposes, powers, and duties of the office of energy resources.
  11. On April 15, of each year, the office and the council shall submit to the governor, the president of the senate, and the speaker of the house of representatives, separate financial and performance reports regarding the demand-side management programs, including the specific level of funds that were contributed by the residential, municipal, and commercial and industrial sectors to the overall programs; the businesses, vendors, and institutions that received funding from demand-side management gas and electric funds used for the purposes in this section; and the businesses, vendors, and institutions that received the administrative funds for the purposes in subsections (i) and (j). These reports shall be posted electronically on the websites of the office of energy resources and the energy efficiency and resources management council.
  12. On or after August 1, 2015, at the request of the Rhode Island infrastructure bank, each electric distribution company, except for the Pascoag Utility District and Block Island Power Company, shall remit two percent (2%) of the amount of the 2014 electric demand-side charge collections to the Rhode Island infrastructure bank.
  13. On or after August 1, 2015, at the request of the Rhode Island infrastructure bank, each gas distribution company shall remit two percent (2%) of the amount of the 2014 gas demand-side charge collections to the Rhode Island infrastructure bank.
  14. Effective January 1, 2022, the commission shall allocate, from demand-side management gas and electric funds authorized pursuant to this section, five million dollars ($5,000,000) of such funds on an annual basis to the Rhode Island infrastructure bank. Gas and electric demand-side funds transferred to the Rhode Island  infrastructure bank pursuant to this section shall be eligible to be used in any energy efficiency, renewable energy, or demand-side management project financing program administered by the Rhode Island infrastructure bank notwithstanding any other restrictions on the use of such collections set forth in this chapter. The infrastructure bank shall report annually to the commission within ninety (90) days of the end of each calendar year how collections transferred under this section were utilized.

History of Section. P.L. 1979, ch. 410, art. 6, § 1; P.L. 1996, ch. 316, § 1; P.L. 1997, ch. 326, § 105; P.L. 2001, ch. 142, § 3; P.L. 2002, ch. 144, § 3; P.L. 2005, ch. 49, § 1; P.L. 2005, ch. 61, § 1; P.L. 2006, ch. 236, § 7; P.L. 2006, ch. 237, § 7; P.L. 2008, ch. 100, art. 28, § 6; P.L. 2008, ch. 228, § 3; P.L. 2008, ch. 422, § 3; P.L. 2011, ch. 19, § 1; P.L. 2011, ch. 28, § 1; P.L. 2012, ch. 241, art. 4, § 14; P.L. 2015, ch. 141, art. 14, § 6; P.L. 2016, ch. 149, § 2; P.L. 2016, ch. 163, § 2; P.L. 2017, ch. 480, § 2; P.L. 2021, ch. 223, § 2, effective July 8, 2021; P.L. 2021, ch. 224, § 2, effective July 8, 2021.

Compiler’s Notes.

This section was amended by three acts ( P.L. 2008, ch. 100, art. 28, § 6; P.L. 2008, ch. 228, § 3; P.L. 2008, ch. 422, § 3) passed by the 2008 General Assembly. Since the changes are in conflict with each other, the director of law revision of the joint committee on legislative services has determined that the changes made by P.L. 2008, ch. 228, § 3 and P.L. 2008, ch. 422, § 3 superseded the changes made by P.L. 2008, ch. 100, art. 28, § 6.

P.L. 2021, ch. 223, § 2, and P.L. 2021, ch. 224, § 2 enacted identical amendments to this section.

Cross References.

Adoption of administrative rules and regulations, § 42-35-1 et seq.

NOTES TO DECISIONS

Informational Advertising.

Informational advertisements which primarily encouraged the use of certain, more efficient, gas appliances over other gas appliances and as such, encouraged conservation rather than merely promoting the use of gas, were precisely the type of advertising that the exception within this section allowing for advertising of an informational or educational nature was meant to encourage. Valley Gas Co. v. Burke, 518 A.2d 1363, 1986 R.I. LEXIS 569 (1986).

Collateral References.

Advertising or promotional expenditures of public utility as part of operating expenses for ratemaking purposes. 83 A.L.R.3d 963.

39-2-1.3. Payment for cellular telephone services — Late charges.

No subscriber to a cellular telephone service shall be subject to an assessment of a late fee on a monthly billing unless the payment is at least thirty (30) days past the close of the billing period that is the subject of the statement. A cellular telephone operator shall not impose a late fee unless the bill contains a clear and conspicuous notice of when the late fee is to be imposed consistent with this section.

History of Section. P.L. 1998, ch. 344, § 1.

39-2-1.4. Reasonable backup or supplemental rates.

  1. Electricity produced by cogeneration and small power production can be of benefit to the public as part of the total energy supply of the entire electric grid of the state or consumed by a cogenerator or small power producer. Subject to compliance with applicable rules governing service, public utilities shall provide transmission or distribution service to enable a retail customer to transmit electrical power generated by the customer at one location to the customer’s facilities at another location, if the commission finds that the provision of this service, and the charges, terms, and other conditions associated with the provision of this service, are not likely to result in higher cost electric service to the utility’s general body of retail and wholesale customers or adversely affect the adequacy or reliability of electric service to all customers.
  2. Each electric distribution company shall provide backup and supplemental service to any customer who is self-generating electricity and meets reasonable interconnection requirements designed to protect the distribution and transmission system. The commission shall ensure that backup and supplemental rates made, exacted, demanded, or collected by any public utility from a customer who is self-generating shall be just and reasonable and may not be unduly discriminatory. Any backup and supplemental rate tariffs in effect as of May 2002 may remain in effect as designed through December 31, 2004. Commencing January 1, 2005, the backup and supplemental rates shall be cost-based but may be discounted as provided for in subsection (c); provided, however, that the John O. Pastore Center power plant shall be exempt from the backup or supplemental rates.
  3. Notwithstanding the rate design criteria set forth in subsection (b), the commission may permit or require discounted backup-distribution-service rates in order to encourage economically efficient cogeneration or small power-production projects if it finds these discounts to be in the public interest and/or contribute to system reliability procurement or least-cost procurement; provided, however, that any revenue not recovered by the electric distribution company as a result of these discounted distribution rates shall be accounted for and recovered in the rates assessed on all customers. The commission shall, in determining the public interest in distributed-generating facilities, consider reduced environmental impacts, increased energy efficiency, reduced transmission losses and congestion, effects on electric system reliability, and other factors the commission may deem relevant.
  4. The provisions of this section shall be effective as of January 1, 2005.

History of Section. P.L. 2002, ch. 144, § 4; P.L. 2003, ch. 376, art. 15, § 1; P.L. 2004, ch. 595, art. 35, § 1; P.L. 2006, ch. 236, § 7; P.L. 2006, ch. 237, § 7.

39-2-2. Rate discrimination.

  1. If any public utility or any agent or officer of a public utility, as defined in chapter 1 of this title, shall directly or indirectly, by any device whatsoever, or otherwise, charge, demand, collect, or receive from any person, firm, or corporation a greater or less compensation for any service rendered or to be rendered by it, in, or affecting, or relating to the transportation of persons or property between points within this state, the distribution of electricity, or the production, transmission, delivery, or furnishing of heat, or water, or the conveyance of telegraph or telephone messages, or for any service in connection therewith, than that prescribed in the published schedules or tariffs then in force or established as provided herein, or than it charges, demands, collects, or receives from any other person, firm, or corporation for a like and contemporaneous service, under substantially similar circumstances and conditions, the public utility shall be guilty of unjust discrimination which is hereby prohibited and declared to be unlawful and, upon conviction thereof, shall be fined not less than two hundred dollars ($200) nor more than five hundred dollars ($500) for each offense; and the agent or officer so offending shall be guilty of a misdemeanor and, upon conviction thereof, shall be fined not less than fifty dollars ($50.00) nor more than five hundred dollars ($500) for each offense.
  2. Nothing in this section or any other provision of the law shall be construed to prohibit the giving by any public utility of free or reduced-rate service to any elderly person as defined by the division.

History of Section. P.L. 1912, ch. 795, § 39; G.L. 1923, ch. 253, § 39; G.L. 1938, ch. 122, § 36; G.L. 1956, § 39-22; P.L. 1971, ch. 256, § 1; P.L. 1971, ch. 265, § 3; P.L. 1972, ch. 205, § 3; P.L. 1996, ch. 316, § 1.

Cross References.

Excessive gas or water charges, penalty, § 11-35-10 .

False gas or water meter, penalty, § 11-35-10 .

Fees, rates, and charges, § 46-15.3-22 .

NOTES TO DECISIONS

Elements of Offense.

The utility restructuring statute prohibits varying rates for a like and contemporaneous service provided under substantially similar circumstances, or rates that confer an undue or unreasonable preference or advantage upon a customer group and does not provide that a company charging its customers different rates without a cost differential has invariably engaged in price discrimination. Energy Council v. PUC, 773 A.2d 853, 2001 R.I. LEXIS 159 (2001).

Intrastate V. Interstate.

Complaint that common carrier charged plaintiff $1.60 a ton for transporting fuel oil a distance of five miles but charged another shipper only $1.00 a ton for transporting fuel oil a distance of eight miles did not present a case of discrimination under this section where the lower rate was on an interstate shipment. United States Finishing Co. v. New York, N. H. & H. R.R., 48 R.I. 11 , 135 A. 49, 1926 R.I. LEXIS 4 (1926).

Collateral References.

Discrimination between property within and that outside municipality or other governmental district as to public service or utility rates. 4 A.L.R.2d 595.

Mistake of carrier as to amount of charges as rendering it liable in damages for loss caused by exaction of greater amount, where discrimination in carrier’s charges is forbidden. 83 A.L.R. 245; 88 A.L.R.2d 1375.

Racial or religious discrimination in furnishing of public utilities, services or facilities. 53 A.L.R.3d 1027.

Variations of utility rates based on flat and meter rates. 40 A.L.R.2d 1331.

39-2-3. Unreasonable preferences or prejudices.

  1. If any public utility shall make or give any undue or unreasonable preference or advantage to any particular person, firm, or corporation, or shall subject any particular person, firm, or corporation to any undue or unreasonable prejudice or disadvantage in any respect whatsoever, the public utility shall be guilty of a misdemeanor and, upon conviction thereof, shall be fined not less than two hundred dollars ($200) nor more than five hundred dollars ($500) for each offense.
  2. Nothing in this section or any other provision of the law shall be construed to prohibit the giving by any public utility, of free or reduced-rate service to an elderly person as defined by the division.

History of Section. P.L. 1912, ch. 795, § 40; G.L. 1923, ch. 253, § 40; G.L. 1938, ch. 122, § 37; G.L. 1956, § 39-2-3 ; P.L. 1971, ch. 256, § 2.

Cross References.

Civil liability, § 39-2-7 .

NOTES TO DECISIONS

Corporate Rules.

Landlord wrongfully deprived of profit from requested remetering of electricity could recover for losses suffered, even after utility had filed rule against remetering, where utility did not refuse or cancel remetering rights in competitors of landlord, since filing of such rule did not give it the effect of a valid utilities commission regulation so as to make its violation illegal. Main Realty Co. v. Blackstone Valley Gas & Elec. Co., 59 R.I. 29 , 193 A. 879, 1937 R.I. LEXIS 132 (1937).

Elements of Offense.

The two aspects of the provisions of this statute are the giving by the public service corporation of an undue and unreasonable preference and advantage to plaintiff’s competitors and the subjecting of plaintiff to any undue and unreasonable prejudice and disadvantage. Main Realty Co. v. Blackstone Valley Gas & Elec. Co., 59 R.I. 29 , 193 A. 879, 1937 R.I. LEXIS 132 (1937).

The utility restructuring statute prohibits varying rates for a like and contemporaneous service provided under substantially similar circumstances, or rates that confer an undue or unreasonable preference or advantage upon a customer group and does not provide that a company charging its customers different rates without a cost differential has invariably engaged in price discrimination. Energy Council v. PUC, 773 A.2d 853, 2001 R.I. LEXIS 159 (2001).

Exceptional Circumstances.

Exceptional circumstances which would justify public service corporation’s refusal to grant landlord’s request to remeter electricity without discrimination under this section where allowed to his competitors could not be solely based on business viewpoint of the corporation. Main Realty Co. v. Blackstone Valley Gas & Elec. Co., 59 R.I. 29 , 193 A. 879, 1937 R.I. LEXIS 132 (1937).

Remetering Privilege.

Landlord was subjected to “undue and unreasonable prejudice or disadvantage” where public service corporation had wrongfully refused to grant landlord’s request to allow him to remeter electricity but allowed such practice by his competitors. Main Realty Co. v. Blackstone Valley Gas & Elec. Co., 59 R.I. 29 , 193 A. 879, 1937 R.I. LEXIS 132 (1937).

Collateral References.

Racial or religious discrimination in furnishing of public utilities, services or facilities. 53 A.L.R.3d 1027.

39-2-4. Acceptance of unlawful rebates or advantages.

It shall be unlawful for any person, firm, or corporation knowingly to solicit, accept, or receive any rebate, concession, or discrimination in respect to any service in, affecting, or relating to the transportation of persons or property, or affecting or relating to the distribution of electricity, or the production, transmission, delivery, or furnishing of heat or water, or the conveyance of telephone or telegraph messages within this state, or for any service in connection therewith, whereby the service shall, by any device whatsoever or otherwise, be rendered free, or at a less rate than that named in the published schedules and tariffs in force, as provided therein, or whereby any service or advantage is received other than is herein specified. Any person, firm, or corporation violating the provisions of this section shall be guilty of a misdemeanor and upon conviction thereof shall be punished by a fine of not less than fifty dollars ($50.00) nor more than five hundred dollars ($500) for each offense.

History of Section. P.L. 1912, ch. 795, § 41; G.L. 1923, ch. 253, § 41; G.L. 1938, ch. 122, § 38; G.L. 1956, § 39-2-4 ; P.L. 1971, ch. 265, § 4; P.L. 1972, ch. 205, § 4; P.L. 1996, ch. 316, § 1.

NOTES TO DECISIONS

Residential and Nonresidential Consumers.

It was not “unreasonable” or an “undue” preference or advantage for the public utilities commission to establish varying last resort power service rates for nonresidential and residential customers since there was ample evidence in the record to support the commission’s conclusion that nonresidential and residential customers were not similarly situated because of the dearth of opportunity for residential consumers to secure alternative sources of power. Energy Council v. PUC, 773 A.2d 853, 2001 R.I. LEXIS 159 (2001).

Collateral References.

Conspiracy to violate interstate commerce act by giving and receiving rebates. 11 A.L.R. 199; 104 A.L.R. 1430.

Forwarder, payment by carrier to, as unlawful rebate or preference. 141 A.L.R. 934.

Rights and remedies of one whose contract for reduced rate in consideration of a grant of property or privileges is nullified by public authority. 14 A.L.R. 252.

39-2-5. Exceptions to anti-discrimination provisions.

The provisions of §§ 39-2-2 39-2-4 shall be subject to the following exceptions:

  1. A public utility may issue or give free transportation or service to its employees and their families, its officers, agents, surgeons, physicians, and attorneys at law, and to the officers, agents, and employees, and their families of any other public utility.
  2. With the approval of the division, any public utility may give free transportation or service, upon such conditions as the public utility may impose, or grant special rates therefor to the state, to any town or city, or to any water or fire district, and to the officers thereof, for public purposes, and also to any special class or classes of persons, not otherwise referred to in this section, in cases where the same shall seem to the division just and reasonable, or required in the interests of the public, and not unjustly discriminatory.
  3. With the approval of the division, any public utility operating a railroad or street railway may furnish to the publishers of newspapers and magazines, and to their employees, passenger transportation in return for advertising in the newspapers or magazines at full rates.
  4. With the approval of the division, any public utility may exchange its service for the service of any other public utility furnishing a different class of service.
  5. Nothing in this section or any other provision of the law shall be construed to prohibit the giving by any public utility, of free or reduced-rate service to an elderly person as defined by the division.
  6. Any motor carrier of persons, as defined in chapter 13 of this title, may elect to file a tariff providing for a rate reduction of twenty-five percent (25%) below its one-way-fare tariff applying to any person who is sixty-five (65) years of age or older and any person assisting and traveling with a blind passenger who is not required to pay any fare pursuant to the provisions of § 39-2-13 for bus rides between the hours of ten o’clock (10:00) a.m. and three o’clock (3:00) p.m. of each day. In such event, the reduced fare shall be paid in part by the passenger and in part by the state. That part of the reduced fare payable by the state shall be one-half (1/2) of the reduced fare adjusted upward to end in the nearest zero (0) or five cents (.05), and that part payable by the passenger shall be the balance of the reduced fare. Payments by the state under this section shall be paid monthly under procedures agreed upon by the department of transportation and the carrier.
  7. [Deleted by P.L. 2004, ch. 378, § 4, and by P.L. 2004, ch. 504, § 4.]
  8. Any person, firm, or corporation or any officer, agent, servant, or employee thereof who shall violate the provisions of subsection (7) of this section by fraudulently obtaining a telecommunications device shall, upon conviction, be fined not exceeding five hundred dollars ($500) or be imprisoned for a term not exceeding one year.
    1. Nothing in this section or any other provision of the general laws shall be construed to prohibit the commission from taking actions to enable the state to participate in a Federal Communications Commission telephone lifeline program. The commission may set a subscriber-funded, monthly residence basic exchange lifeline telephone service credit in an amount not to exceed the federal subscriber line access charge or the monthly basic-service charge, whichever is less, for those persons who receive Supplemental Security Income (SSI), Aid to Families With Dependent Children (AFDC), general public assistance (GPA), aid from the Rhode Island medical assistance program, or food stamps issued pursuant to the Food Stamp Act of 1964 as amended (Pub. L. No. 88-525 and amendments made thereto, 7 U.S.C. § 2011 et seq.), assistance from the Low Income Home Energy Assistance Program (LIHEAP) as administered by the department of administration, division of planning, and effective April 1, 1993, assistance from the Rhode Island pharmaceutical assistance program administered by the office of healthy aging. The public utilities commission may promulgate regulations to implement this section. The department of human services and the department of administration, division of planning, shall certify subscriber eligibility for the programs in accordance with public utilities commission and Federal Communications Commission guidelines.
    2. The department of human services shall report monthly to the governor and to the house of representatives fiscal advisor the number of persons newly eligible for the lifeline telephone service credit hereunder solely by virtue of their eligibility to receive food stamp assistance and the department of administration, division of planning, shall, also, report monthly to the governor and to the house of representatives fiscal advisor the number of persons newly eligible for the lifeline telephone service credit hereunder solely by virtue of their participation in the Low Income Home Energy Assistance Program (LIHEAP).
  9. Nothing in this section or any other provision of the general laws shall be construed to prohibit any public utility with the approval of the commission, from forgiving arrearages of any person in accordance with the provisions of § 39-2-1(d) .
  10. Nothing in this section or any other provision of the law shall be construed to prohibit any utility company from cutting, disconnecting, or removing mains, poles, wires, conduits, or fixtures free of charge to nonprofit housing development corporations prior to moving a building to be used as affordable housing for at least a ten-year (10) period.
  11. Nothing in this section or any other provision of the general laws shall be construed to prohibit any telecommunications provider, with the approval of the commission, from offering any residential customer a reduced rate, provided such rate covers all costs. A telecommunications provider may offer a business customer a reduced rate without commission approval; provided that the rate covers all costs.
  12. A gas or electric distribution company may provide discounts to low-income customers in accordance with the affordable energy plan provisions of § 42-141-5(d) [repealed]. Nothing contained herein shall prohibit the continuation of any low-income discounts approved by the commission prior to January 1, 2006, and in effect as of that date.

History of Section. P.L. 1912, ch. 795, § 42; G.L. 1923, ch. 253, § 42; G.L. 1938, ch. 122, § 39; G.L. 1956, § 39-2-5 ; P.L. 1971, ch. 256, § 3; P.L. 1976, ch. 113, § 1; P.L. 1983, ch. 216, § 1; P.L. 1985, ch. 48, § 1; P.L. 1986, ch. 352, § 1; P.L. 1987, ch. 226, § 1; P.L. 1988, ch. 388, § 1; P.L. 1988, ch. 580, § 2; P.L. 1989, ch. 306, § 1; P.L. 1990, ch. 182, § 1; P.L. 1991, ch. 113, § 1; P.L. 1992, ch. 136, § 1; P.L. 1993, ch. 115, § 5; P.L. 1995, ch. 168, § 1; P.L. 1997, ch. 326, § 105; P.L. 2004, ch. 378, § 4; P.L. 2004, ch. 504, § 4; P.L. 2006, ch. 236, § 7; P.L. 2006, ch. 237, § 7; P.L. 2008, ch. 475, § 20; P.L. 2011, ch. 132, § 1; P.L. 2011, ch. 148, § 1.

Compiler’s Notes.

Section 42-141-5, referred to in subsection (13) of this section, was repealed by P.L. 2008, ch. 100, art. 18, § 1, effective July 1, 2008.

Cross References.

Adaptive telephone equipment loan program committee, § 39-23-1 et seq.

Adaptive telephone equipment loan program fund, § 40-1-9 .

Fees, rates, and charges, § 46-15.3-22 .

NOTES TO DECISIONS

Authority of the Public Utilities Commission.

R.I. Gen. Laws § 39-2-5(2) is clear and unambiguous: it states that a public utility may grant special rates to any town. It thus clearly does not give the Public Utilities Commission the power to impose a discounted rate on a public utility; rather, it grants a public utility the power to propose a discounted rate for a town if the public utility chooses to make such a proposal. In re A&R Marine Corp., 199 A.3d 533, 2019 R.I. LEXIS 13 (2019).

Public Utilities Commission (PUC) did not err in denying a town’s request for a discounted ferry rate for municipal vehicles and passengers where R.I. Gen. Laws § 39-2-5(2) clearly stated that a public utility had the power to propose a discounted rate for a town if the public utility chose to make such a proposal, it did not give the PUC the power to impose a discounted rate, and the ferry provider had not proposed a discounted rate. In re A&R Marine Corp., 199 A.3d 533, 2019 R.I. LEXIS 13 (2019).

Industrial Discounts.

The Narragansett plan, which had the goal of substantially increasing the number of jobs in the state by offering a discount to present and future industrial and large commercial ratepayers, was just and reasonable, required in the interests of the public, and not unjustly discriminatory. Violet v. Narragansett Elec. Co., 505 A.2d 1149, 1986 R.I. LEXIS 427 (1986).

Lifeline Programs.

The determination of the commission to exempt the first 300 kilowatt hours of electricity used by residential customers could not be sustained unless based upon competent evidence relevant to the issue of rate design. Blackstone Valley Chamber of Commerce v. Public Utils. Comm'n, 121 R.I. 122 , 396 A.2d 102, 1979 R.I. LEXIS 1750 (1979).

Collateral References.

Validity of preferential rates for elderly or low-income persons. 29 A.L.R.4th 615.

39-2-6. Repair and construction of highway bridges used by street railways.

Whenever any highway bridge over which a street railway is operated shall become unsafe for public travel, the public utility operating the railway shall pay the whole expense of repairing, strengthening, or reconstructing the bridge, if the bridge would be safe for public travel if the railway were not operated over it; but, if a reconstruction of the bridge or the construction of a new bridge is required for any other cause, or if the bridge would be unsafe for public travel if the railway were not operated over it, then so much of the expense of repairing, strengthening, constructing, or reconstructing the bridge as may be equitable shall be paid by the public utility operating the railway. In the event of any disagreement between the public utility and the town or city bound by law to maintain the bridge, as to the necessity of any repair or reconstruction thereof, or as to the character of the repair or reconstruction, or as to the apportionment of the expense of the repair or reconstruction, the commission, upon application of any party in interest, and after due hearing, shall make such orders as it shall deem necessary, in the interest of public safety, for the repair, strengthening, or reconstruction of the bridge, and shall determine in accordance with the principle herein stated, the portion of the expense of the repair, strengthening, or reconstruction that shall be borne by the public utility.

History of Section. P.L. 1912, ch. 795, § 53; G.L. 1923, ch. 253, § 52; G.L. 1938, ch. 122, § 49; G.L. 1956, § 39-2-6 ; P.L. 1969, ch. 240, § 2.

Cross References.

Cost of construction or repair of bridges used by public utilities, § 24-8-23 .

NOTES TO DECISIONS

Commission May Order Reconstruction of Overpass.

As part of the plan of a chartered railroad, public utilities commission may order reconstruction of overpass to make it safe for public travel and for additional use of streetcar system, provided streetcar system reimburses railroad for additional set of tracks. United E. Ry. v. Cranston, 46 R.I. 425 , 128 A. 213, 1925 R.I. LEXIS 21 (1925).

39-2-7. Civil liability for violations — Limitation of actions.

If any public utility shall do, or cause to be done, or permit to be done, any matter, act, or thing in chapters 1 — 5 of this title prohibited or declared to be unlawful, or shall omit to do any act, matter, or thing to be done by it, the public utility shall be liable to the person, firm, or corporation injured thereby, in a civil action to be brought within three (3) years from the time the cause of action accrues, and not after, for the amount of damage sustained in consequence of the violation; provided, that any recovery as provided in this section, shall in no manner affect the recovery by the state of the penalty prescribed for the violation.

History of Section. P.L. 1912, ch. 795, § 43; G.L. 1923, ch. 253, § 43; G.L. 1938, ch. 122, § 40; G.L. 1956, § 39-2-7 .

NOTES TO DECISIONS

Jurisdiction of Court.

Superior court had original jurisdiction without action by public utilities commission to determine whether landlord had been unjustly discriminated against by public service corporation’s refusal to allow request for remetering on allegedly similar basis as that allowed competitors, since discrimination was claimed in application of regulations and statutes, rather than in statutes and regulations themselves, and since suit for damages in court is only remedy prescribed by statute. Main Realty Co. v. Blackstone Valley Gas & Elec. Co., 59 R.I. 29 , 193 A. 879, 1937 R.I. LEXIS 132 (1937).

Where plaintiffs sued utility company for $378 pursuant to this section, and asked for $5000 punitive damages, the court held that unless the suit was based on a tort involving malice, wantonness and willfulness punitive damages were not proper under this section and could not be considered in determining jurisdictional amount, hence superior court under § 8-2-14 lacked jurisdiction. Berberian v. New England Tel. & Tel. Co., 117 R.I. 629 , 369 A.2d 1109, 1977 R.I. LEXIS 1733 (1977).

Loss of Profits/interest.

Landlord could not recover interest on loss of profits from wrongful refusal of public service corporation to allow remetering of electricity, since too remote and speculative, particularly where he did not specifically plead such loss of interest, but could recover interest from date of writ. Main Realty Co. v. Blackstone Valley Gas & Elec. Co., 59 R.I. 29 , 193 A. 879, 1937 R.I. LEXIS 132 (1937).

Measure of Damages.

Landlord wrongfully deprived of remetering of electricity could recover for profits he would have made based on difference between amounts tenants paid individually and what he would have had to pay under fixed wholesale rates on what they used, less certain rebates. Main Realty Co. v. Blackstone Valley Gas & Elec. Co., 59 R.I. 29 , 193 A. 879, 1937 R.I. LEXIS 132 (1937).

Collateral References.

Propriety of injunctive relief against diversion of water by municipal corporation or public utility. 42 A.L.R.3d 426.

Recoverability of compensatory damages for mental anguish or emotional distress for breach of service contract. 54 A.L.R.4th 901.

39-2-8. Penalty for violations.

Any public utility which shall violate any provision of chapters 1 — 5 of this title, or shall do any act herein prohibited, or shall fail or refuse to perform any duty enjoined upon it for which a penalty has not been provided, shall be subject to a penalty of not less than two hundred dollars ($200) nor more than one thousand dollars ($1,000), and in the case of a continuing violation of any of the provisions of the chapters, every day’s continuance thereof shall be deemed to be a separate and distinct offense.

History of Section. P.L. 1912, ch. 795, § 56; G.L. 1923, ch. 253, § 55; G.L. 1938, ch. 122, § 52; G.L. 1956, § 39-2-8 ; P.L. 1973, ch. 199, § 2.

NOTES TO DECISIONS

In General.

R.I. Gen. Laws § 39-2-8 permits the Division of Public Utilities and Carriers of the State of Rhode Island to levy a fine of up to $1,000 for failure to perform a legal duty; however, the Division exceeded its authority in imposing a separate fine for each question not answered in a hearing before it, especially since the questions asked essentially the same thing. Interstate Navigation Co. v. Div. of Pub. Utils. & Carriers of R.I., 824 A.2d 1282, 2003 R.I. LEXIS 167 (2003).

39-2-9. Uniform services and rates of carriers.

Every common carrier shall receive and transport all goods, wares, and merchandise offered to him or her by any person, as promptly and upon as favorable terms and conditions as the common carrier is receiving and transporting goods, wares, and merchandise at the place in which the same are offered to be delivered to him or her, in the ordinary course of business, for any other person.

History of Section. G.L. 1896, ch. 161, § 1; G.L. 1909, ch. 190, § 1; G.L. 1923, ch. 218, § 1; G.L. 1938, ch. 123, § 1; G.L. 1956, § 39-2-9 .

Cross References.

Bees, transportation, § 4-12-12 .

Explosives, delivery for transportation, § 11-13-8 .

Intoxicating liquors, unlawful transportation, § 3-4-6 .

Nursery stock shipments, § 2-18.1-19 .

Quarantine regulations, compliance required, § 23-8-19 .

NOTES TO DECISIONS

Interstate Commerce.

The provisions of §§ 39-2-9 39-2-15 apply to contracts made in Rhode Island for transportation to points outside of the state as well as to transportation within the state and, as so construed, the sections do not violate U.S. Const. art. I, § 8, since the provisions do not obstruct or delay commerce. Providence Coal Co. v. Providence & Worcester R.R., 15 R.I. 303 , 4 A. 394, 1886 R.I. LEXIS 24 (1886).

Collateral References.

Boycott, refusal of carrier’s employees to handle cars or freight. 6 A.L.R. 966; 16 A.L.R. 230; 27 A.L.R. 651; 32 A.L.R. 779; 116 A.L.R. 484.

Private switch, spur, or siding, duty of carrier to receive freight on or along. 32 A.L.R. 193.

Service of government as excuse for failure of carrier to discharge duty to individual. 8 A.L.R. 162.

39-2-10. Injunction or mandamus.

The superior court may enforce compliance with the provisions of § 39-2-9 by writ of injunction or mandamus.

History of Section. G.L. 1896, ch. 161, § 2; C.P.A. 1905, § 1220; G.L. 1909, ch. 190, § 2; G.L. 1923, ch. 218, § 2; G.L. 1938, ch. 123, § 2; G.L. 1956, § 32-2-10 .

Collateral References.

Jurisdiction of state court of action to compel transportation of interstate shipment. 64 A.L.R. 360.

39-2-11. Penalty for refusal of carrier to receive and transport.

Every common carrier who shall refuse or neglect to receive and transport goods, wares, and merchandise in the manner as provided in this chapter shall be fined not less than fifty dollars ($50.00) nor more than five hundred dollars ($500).

History of Section. G.L. 1896, ch. 161, § 3; G.L. 1909, ch. 190, § 3; G.L. 1923, ch. 218, § 3; G.L. 1938, ch. 123, § 3; G.L. 1956, § 39-2-11 ; P.L. 1997, ch. 326, § 105.

39-2-12. Civil liability of carrier for refusal.

Every common carrier who shall so neglect or refuse shall also be civilly liable to any person aggrieved for any injury sustained by him or her by reason of the carrier’s neglect or refusal.

History of Section. G.L. 1896, ch. 161, § 4; G.L. 1909, ch. 190, § 4; G.L. 1923, ch. 218, § 4; G.L. 1938, ch. 123, § 4; G.L. 1956, § 39-2-12 ; P.L. 1997, ch. 326, § 105.

39-2-13. Admission of guide dogs.

Any blind or deaf person, who uses the services of a seeing-eye guide dog, or personal-assistance animal or a hearing-ear signal dog, clearly identified as such by a yellow harness and trained by a recognized training agency or school, may enter any public facility of any public utility or common carrier in this state, and when riding on any bus or other public utility or common carrier engaged in the transportation of passengers, or when riding in any elevator in this state where a landlord has the elevator operated for the use of the landlord’s tenants and their visitors or while in any building in this state open to the public, may keep the animal in his or her immediate custody; and the person shall not be required to pay any charge or fare, for, or on account of, the transportation thereon of him or herself and any dog so accompanying him or her, in addition to the charge or fare lawfully chargeable for his or her own transportation; provided, however, the provisions of this section shall not apply to railroad sleeping, parlor, club, buffet, or lounge cars.

History of Section. P.L. 1938, ch. 2595, § 1; G.L. 1938, ch. 402, § 1; G.L. 1956, § 39-2-16 ; G.L. 1956, § 39-2-13 ; P.L. 1969, ch. 240, § 3; P.L. 1979, ch. 159, § 3; P.L. 1997, ch. 85, § 3; P.L. 2020, ch. 79, art. 1, § 3.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

39-2-14. [Repealed.]

History of Section. G.L. 1938, ch. 402, § 2; P.L. 1946, ch. 1686, § 1; G.L. 1956, § 39-2-17; P.L. 1969, ch. 240, § 3; P.L. 1979, ch. 159, § 4; Repealed by P.L. 1997, ch. 85, § 3, effective July 2, 1997.

Compiler’s Notes.

Former § 39-2-14 concerned a penalty for refusing to carry a person with a guide dog. For present comparable provisions, see § 40-9.1-3 .

39-2-15. Interference with construction — Notice.

  1. No utility shall interfere with, or delay the progress of work under any contract with the state department, agency, division, or board, for the construction, reconstruction, or improvements of any highway, street, road, railroad grade crossing, bridge, tunnel, underpass, overpass, or other state contract work, by failing to remove or relocate its poles, wires, cables, conduits, pipes, or any other facilities or structures within the time schedule therefor by an agreement or under the terms of an agreement between the department, agency, division, or board and the utility, or, if no time is fixed by an agreement or under the terms of such an agreement, within the time fixed by the department, agency, division, or board, by notice served upon the utility by the state department, agency, division, or board.
  2. If the notice is utilized, it shall describe the public improvement and the geographical location thereof, the date of commencement, and the date of completion, if any, provided for by the contract; the contractor’s name and address; the manner in which and the extent to which the facilities and structures of the utility obstruct or prevent the contractor from progressing or performing the work comprehended by the contract; and shall fix the date or time within which the utility is required to remove or relocate its facilities or structures, specifying the same, in order to provide the contractor with the site when required by the contractor for progressing or performing the work pursuant to the state contract. The notice shall be in writing and shall be served upon the utility either personally or by certified mail at its principal office or place of business in the county where the work under the contract is to be performed, or, if there is no principal office or place of business in the county, at the nearest principal office or place of business of the utility, outside of the county.
  3. In the event the utility to whom the notice described in subsection (b) was directed is, for any reason, unable, within the prescribed period, to remove or relocate the facilities or structures specified in the notice, the utility shall immediately advise the department, agency, division, or board and the contractor, in writing, of the inability, and in the same communication so advise the department, agency, division, or board, and the contractor of the approximate date that the removal or relocation of facilities or structures could be effected; and shall further state the basis for the inability of the utility to remove or relocate the facilities or structures within the time specified by the notice served thereon by the department, agency, division, or board. The department, agency, division, or board, after examining and considering the utility’s basis for establishing a different schedule for the removal or relocation, shall, if its basis is reasonable, establish and notify the utility of a revised schedule for completing the removal or relocation.
  4. In cases where the utility has been reimbursed for removal, relocation, replacement, or reconstruction, a utility failing to complete the removal or relocation of the structures or facilities within a period of thirty (30) days beyond the time fixed therefor by the latest time schedule established in accordance with this section, shall be liable and responsible to any contractor for any damages, direct or consequential, sustained by any contractor as the result thereof, in an action to be brought by the contractor against the utility in a court of competent jurisdiction within three (3) years from the time fixed for the removal or relocation of the structures or facilities. If an action is commenced against a utility, as heretofore provided, the utility may interpose in its answer in the action any defense available under the provisions of the civil practice law and rules. The unreasonableness of the time schedule imposed by the state department, agency, division, or board shall be an absolute defense by the utility to any action by the contractor. If, in any action, the utility is found to owe nothing to the contractor, or if an offer of settlement is made by the utility that is not accepted by the contractor, and the resulting verdict against the utility is less than the offer of settlement, then in either event, the total cost of the utility of litigation, including reasonable attorney’s fees, shall be paid to the utility by the contractor.

History of Section. P.L. 1985, ch. 339, § 1; P.L. 1997, ch. 326, § 105.

Repealed Sections.

The former section (P.L. 1969, ch. 240, § 4; G.L. 1956, § 39-2-15 ; P.L. 1973, ch. 199, § 2), concerning notice of excavations or discharge of explosives, was repealed by P.L. 1984, ch. 119, § 2, effective July 1, 1984. For present provisions of law, see § 39-1.2-1 et seq.

Collateral References.

Liability of one excavating in highway for injury to public utility cables, conduits, or the like. 73 A.L.R.3d 987.

39-2-15.1. Temporary removal of wires and supporting fixtures by nonprofit housing development corporation.

  1. Whenever, in order to move a building to be used as affordable housing for low- and moderate-income persons for a period of not less than ten (10) years, a nonprofit housing development corporation desires that the pipes, mains, poles, wires, conduits, or fixtures of a public utility be cut, disconnected, or removed, the public utility shall cut, disconnect, or remove the same at its own expense.
  2. A nonprofit housing development corporation that desires the cutting, disconnection, or removal of mains, poles, conduits, wires, or fixtures of a public utility shall give written notification thereof to the commission and the utility company. The written notification must contain the location of the site where the structure is presently located; the location of the final destination of the structure; the path of the proposed move, described in reference to the crossings of streets or highways; and the date of the required cutting, disconnection, or removal.
  3. Upon receipt of the written notification described in subsection (b), the commission shall promptly determine whether the applicant is a nonprofit housing development corporation within the meaning of this chapter, and shall also determine whether the structure to be moved will be maintained as affordable housing for a period of not less than ten (10) years. A resolution, issued by the board of directors of the nonprofit housing development corporation and recorded at the land records office of the locality to where the structure is to be moved, stating that the structure will be used as affordable housing for a period of not less than ten (10) years, shall be satisfactory evidence that the requirements of this section have been satisfied. If the commission determines that the applicant satisfies the requirements of this section, it shall give notice thereof to the public utilities and require the applicant to coordinate its building move with the path(s), date(s), and time(s) as determined by the public utilities; however, the date(s), and time(s) shall be no later than thirty (30) days from the date the public utilities have received notice of the commission’s determination.
  4. If, at any time during the ten-year (10) period following the cutting, disconnection, or removal of the pipes, mains, poles, wires, conduits, or fixtures of a public utility, the nonprofit housing development corporation shall utilize the structure for any purpose other than affordable housing, the nonprofit housing development corporation shall reimburse the public utility for the cost of the cutting, disconnection, or removal of the same.

History of Section. P.L. 1988, ch. 580, § 3.

39-2-16. , 39-2-17. [Renumbered.]

Compiler’s Notes.

These sections were renumbered as §§ 39-2-13 and 39-2-14 by P.L. 1969, ch. 240, § 3.

39-2-18. Shutoff devices for gas appliances.

No person, firm, corporation, or other business entity shall install in any home or business establishment any appliance that operates by the use of consumption of a combustible gas unless a shutoff device approved by the division of public utilities and carriers controlling the flow of gas into the appliances is also installed in the immediate area of the appliance; and, provided, further, that any person, firm, corporation, or other business entity that removes a valve or leaves a gas line without the shutoff device shall be guilty of a misdemeanor, and shall be subject to a fine not exceeding one hundred dollars ($100).

History of Section. P.L. 1976, ch. 307, § 1.

Collateral References.

Products liability: sufficiency of evidence to support product misuse defense in actions concerning gas and electric appliances. 58 A.L.R.4th 131.

39-2-19. Display of identification cards required.

Every person employed by a public utility company or nonregulated power producer doing business in this state whose job requires the person to enter homes or business establishments for the purpose of installing, repairing, servicing, meter reading, or other related activities, shall be required to display on the person an identification card bearing the person’s photograph during the performance of the person’s duties.

History of Section. P.L. 1978, ch. 97, § 1; P.L. 1996, ch. 316, § 1.

39-2-20. Communications common carriers — Duty to disclose certain information.

  1. A communications common carrier, as defined in § 12-5.1-1 , shall disclose to the attorney general, or an assistant attorney general specially designated by the attorney general, or any chief of police, the director of the statewide fugitive task force, or the superintendent of state police, the names, addresses, and telephone numbers of persons to whom nonpublished service is furnished upon written certification by the attorney general, or assistant attorney general, or any chief of police, the director of the statewide fugitive task force, or the superintendent of state police that the information is necessary for an investigation of or prosecution of criminal violations of the laws of Rhode Island. No cause of action shall lie in any court against any communications common carrier, its officers, employees, or agents for furnishing or disclosing the information in accordance with the certification. The attorney general, or any chief of police, or the superintendent of state police, or the director of the statewide fugitive task force shall not disclose any information obtained as a result of the written certification except as it is essential to the proper discharge of their duties.
    1. Upon request of a law enforcement agency, a wireless telecommunications carrier shall provide device location information concerning the telecommunications device of the user to the requesting law enforcement agency in order to respond to a call for emergency services or in an emergency situation that involves the risk of death or serious physical injury to any person and requires disclosure without delay of information relating to the emergency.
    2. Notwithstanding any other provision of law to the contrary, nothing in this section prohibits a wireless telecommunications carrier from establishing protocols by which the carrier could voluntarily disclose device location information.
    3. No cause of action shall lie in any court against any wireless telecommunications carrier, its officers, employees, agents, or other specified persons for providing device location information while acting in good faith and in accordance with the provisions of this section.
    4. All wireless telecommunications carriers registered to do business in the state of Rhode Island or submitting to the jurisdiction thereof and all resellers of wireless telecommunications services shall submit their emergency contact information to the Rhode Island division of public safety’s E-911 unit in order to facilitate requests from a law enforcement agency for call location information in accordance with this section. This contact information must be submitted annually by June 15 or immediately upon any change in contact information.
    5. The Rhode Island division of public safety’s E-911 unit shall maintain a database containing emergency contact information for all wireless telecommunications carriers registered to do business in the state of Rhode Island and shall make the information immediately available upon request to all public safety answer points in the state.
  2. This section shall be known and may be cited as the “Kelsey Smith Act.”

History of Section. P.L. 1989, ch. 360, § 1; P.L. 1991, ch. 363, § 1; P.L. 2013, ch. 314, § 1; P.L. 2013, ch. 419, § 1; P.L. 2020, ch. 79, art. 1, § 3.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

39-2-20.1. Internet service providers — Duty to disclose certain information.

  1. As used in this chapter:
    1. “Electronic communication service” means any service that provides to its users the ability to send or receive wire or electronic communications.
    2. “Foreign entities” means any entity that makes a contract or engages in a term of service agreement with a resident of the state of Rhode Island and a foreign entity.
    3. “Internet service provider” means an entity offering the transmission, routing, or providing of connections of digital online communications, between or among points specified by a user, of material of the user’s choosing, without modification to the content of the material as sent or received and includes a provider of online services or network access, including entities that provide an electronic communication service or remote computing service, but does not mean the offering on a common carrier basis of telecommunication facilities or of telecommunications.
    4. “Proper service” means the delivery of a search warrant or an administrative subpoena by hand, by United States mail, by commercial delivery service, by facsimile, or by any other manner to any officer of a corporation or its general manager in the state of Rhode Island to any natural person designated by the entity as its agent for service of process, or if the corporation has designated a corporate agent.
    5. “Remote computing service” means the provision to the public of computer storage or processing services by means of an electronic communication system.
    6. “Service of process on a foreign entity” means that the service of a search warrant or subpoena that is properly served on the foreign entity shall have the same legal force and effect as if served personally within the state of Rhode Island.
    1. An internet service provider, as defined herein, shall disclose subscriber account information consisting of the name, address, IP address, and telephone numbers associated with the account to the attorney general or to the superintendent of the Rhode Island state police upon proper service, and with certification under oath by the attorney general or by the superintendent of the Rhode Island state police, that the information is necessary for an officially documented criminal investigation or prosecution of criminal complaint based on probable cause related to: the exploitation for commercial or immoral purposes, pursuant to § 11-9-1 ; child nudity prohibited in publications pursuant to § 11-9-1.1 ; child pornography prohibited pursuant to § 11-9-1.3 ; employment of children for unlawful purposes pursuant to § 11-9-2 ; seizure and custody of exploited child — proceedings as against neglected child pursuant to § 11-9-3 ; contributing to delinquency pursuant to § 11-9-4 ; cruelty to or neglect of child pursuant to § 11-9-5 ; indecent solicitation of a child pursuant to § 11-37-8.8 ; access to computer for fraudulent purposes pursuant to § 11-52-2 ; intentional access, alteration, damage, or destruction pursuant to § 11-52-3 ; cyberstalking prohibited pursuant to § 11-52-4.2 ; violation of restraining order pursuant to § 11-52-4.3 ; use of false information pursuant to § 11-52-7 , video voyeurism pursuant to § 11-64-2 , online impersonation pursuant to § 11-52-7 .1, and/or electronically disseminating indecent material to minors prohibited pursuant to § 11-9-1.5 .
    2. A duly authorized law enforcement person, as designated above, after issuing a certification pursuant to this section, if an arrest, grand jury proceeding, or any criminal prosecution does not result within sixty (60) days, shall apply to a judge for a search warrant as soon as practicable, but not later than seventy-five (75) days after issuance of the certification. In the event that the application is not approved, no information obtained or evidence derived from the subpoena shall be received in evidence or otherwise disclosed in any trial, hearing, or other proceeding in or before any court, grand jury, department, office, agency, regulatory body, legislative committee, or other governmental authority or committee, and no information concerning any person acquired from the subpoena shall subsequently be used or disclosed in any other manner by state or local officers or employees without the consent of such person.
  2. An administrative subpoena issued to an internet service provider shall authorize the release of non-content-based subscriber information identifying the name, address, and telephone number of the account along with the internet protocol number.
  3. Notwithstanding any provision of this chapter, or any other provision of the general or public laws to the contrary, telephone records may not be released by an internet service provider pursuant to an administrative subpoena. The Rhode Island superior court shall have the authority to enforce the administrative subpoenas upon application by the issuing law enforcement authority.
  4. The attorney general and/or the superintendent of the Rhode Island state police who issues an administrative subpoena to internet service providers related to: the exploitation for commercial or immoral purposes, pursuant to § 11-9-1 ; child nudity prohibited in publications pursuant to § 11-9-1.1 ; child pornography prohibited pursuant to § 11-9-1.3 ; employment of children for unlawful purposes pursuant to § 11-9-2 ; seizure and custody of exploited child — proceedings as against neglected child pursuant to § 11-9-3 ; contributing to delinquency pursuant to § 11-9-4 ; cruelty to or neglect of child pursuant to § 11-9-5 ; indecent solicitation of a child pursuant to § 11-37-8.8 ; access to computer for fraudulent purposes pursuant to § 11-52-2 ; intentional access, alteration, damage, or destruction pursuant to § 11-52-3 ; cyberstalking prohibited pursuant to § 11-52-4.2 ; violation of restraining order pursuant to § 11-52-4.3 ; use of false information pursuant to § 11-52-7 ; video voyeurism pursuant to § 11-64-2 ; online impersonation pursuant to § 11-52-7 .1; and/or electronically disseminating indecent material to minors prohibited pursuant to § 11-9-1.5 , shall provide an annual report to the general assembly each year detailing the following:
    1. The number of administrative subpoenas issued in the previous year;
    2. The number of separate criminal investigations for which the administrative subpoenas were issued and whether the administrative subpoenas resulted in an arrest, indictment, or criminal information;
    3. The number of investigations that remain part of a pending investigation;
    4. The number that resulted in the closing of a criminal investigation as unfounded; and
    5. The number of investigations that did not result in an arrest, grand jury proceeding, or any criminal prosecution due to an inability to identify the subscriber.
  5. The attorney general’s office and the Rhode Island state police shall compile and forward the reports to the general assembly on an annual basis by March 31 of each year for the previous year. The reports shall be a public record.
  6. No cause of action shall lie in any court against any internet service provider, its officers, employees, or agents for furnishing or disclosing information, in strict compliance with this section.
  7. No law enforcement officer, or any party to these investigations under this section, shall disclose any information obtained as a result of this section, except as it is essential to the proper discharge of their duties.

History of Section. P.L. 2011, ch. 196, § 1; P.L. 2011, ch. 223, § 1; P.L. 2016, ch. 96, § 1; P.L. 2016, ch. 106, § 1.

39-2-21. Residential condominiums and associations — Charges for services, residential rates.

Public utilities distributing electricity or providing telephone service, heat, or water, produced, transmitted, delivered, or furnished shall charge residential condominium occupants or residential condominium associations for such distribution service, heat, water, or telephone service at a residential rate and not a business, commercial or any other rate.

History of Section. P.L. 1990, ch. 260, § 1; P.L. 1996, ch. 316, § 1.

39-2-22. Seven-digit dialing option.

In addition to other dialing, where technically and economically feasible, a telecommunications public utility shall make available to users a seven-digit (7) dialing capability for completion of intrastate Rhode Island calls outside the local calling area, unless specifically directed otherwise by the customer.

History of Section. P.L. 1995, ch. 258, § 1.

39-2-23. Safe termination of service — Qualified employees.

No gas company, as described in § 39-1-2(a)(20) , shall allow employees to terminate, restore, or activate gas services unless those employees have gained relevant experience by working for a gas company at least two (2) years and have been properly trained in the safe termination or activation or restoration of gas services. The same criteria shall also apply to the periodic testing of meters. A certification process of gas service employees shall be established and enforced by the public utilities commission.

History of Section. P.L. 2002, ch. 18, § 1.

NOTES TO DECISIONS

Preemption.

Where a gas company claimed that state law, R.I. Gen. Laws § 39-2-23 , regulating gas technicians made it difficult for its Rhode Island division to hire replacement workers during a labor dispute and that the law was preempted by the National Labor Relations Act, 29 U.S.C. § 151 et. seq., the court held that difficulty in hiring was not sufficient for preemption under and the Supremacy Clause, U.S. Const., art. IV, § 2, cl. 2, but neither party presented enough undisputed facts to be awarded summary judgment. Southern Union Gas Co. v. R.I. Div. of Pub. Utils. & Carriers, 306 F. Supp. 2d 129, 2004 U.S. Dist. LEXIS 3593 (D.R.I. 2004).

39-2-24. Confidentiality of telephone records.

  1. As used in this section:
    1. “Customer” means the person who subscribes to telephone service from a telephone company or the person in whose name the telephone service is listed.
    2. “Person” means any individual, partnership, corporation, limited-liability company, trust, estate, cooperative association, or other entity.
    3. “Procure” in regard to a telephone record, means to obtain by any means, whether electronically, in writing or in oral form, with or without consideration.
    4. “Telephone” means any device used by a person for voice communications, in connection with the services of a telephone company, whether the voice communications are transmitted in analog, data, or any other form.
    5. “Telephone company” means any person that provides commercial telephone service to a customer, irrespective of the communications technology used to provide the service, including, but not limited to, traditional wireline or cable telephone service, cellular, broadband PCS or other wireless telephone service, microwave, satellite or other terrestrial telephone service, and voice over internet telephone service.
    6. “Telephone record” means information retained by a telephone company that relates to a telephone number dialed by a customer or another person using the customer’s telephone with the customer’s permission, or the incoming number of a call directed to a customer or another person using the customer’s telephone with the customer’s permission, or other data related to the call typically contained on a customer’s telephone bill, including, but not limited to, the time the call started and ended; the duration of the call; the time the call was made; and any charges applied. A telephone record does not include information collected and retained by or on behalf of a customer utilizing caller identification or similar technology.
  2. No person shall: (1) Knowingly procure, attempt to procure, solicit, or conspire with another to procure a telephone record of any resident of this state without the authorization of the customer to whom the record pertains; (2) Knowingly sell or attempt to sell a telephone record of any resident of this state without the authorization of the customer to whom the record pertains; or (3) Receive a telephone record of any resident of this state with the knowledge the record has been obtained without the authorization of the customer to whom the record pertains or by fraudulent, deceptive, or false means.
  3. The provisions of this section shall not apply to any person acting pursuant to a valid court order or warrant, or a certification in accordance with § 39-2-20 for the names, addresses, and telephone numbers of persons with nonpublished service, or pursuant to chapter 21.1 of this title.
  4. The provisions of this section shall not be construed to prohibit a telephone company from obtaining, using, disclosing, or permitting access to any telephone record, either directly or indirectly, through its agents, employees, or contractors: (1) As otherwise authorized by law; (2) With the lawful consent of the customer; (3) As may be necessarily incident to the rendition of the service, including, but not limited to, initiating, rendering, billing, and collecting customer charges, or to the protection of the rights or property of the telephone company, or to protect the customer of those services and other carriers from fraudulent, abusive, or unlawful use of, or subscription to, such services; (4) To a governmental entity, if the telephone company reasonably believes that an emergency involving immediate danger of death or serious physical injury to any person justifies disclosure of the information; or (5) To the National Center for Missing and Exploited Children, in connection with a report submitted thereto under section 227 of the Victims of Child Abuse Act of 1990 [repealed].
  5. The provisions of this section shall not be construed to expand upon the obligations and duties of any telephone company to protect telephone records beyond those otherwise established by federal or state law, including, but not limited to, provisions governing customer proprietary network information in section 222 of the Communications Act of 1934, as amended, 47 U.S.C. § 222.
  6. The provisions of this section shall not apply to a telephone company and its agents or representatives who act reasonably and in good faith pursuant to this section.
  7. Each telephone company that maintains telephone records of a resident of this state shall establish reasonable procedures to protect against unauthorized or fraudulent disclosure of records that could result in substantial harm or inconvenience to any customer. For purposes of this subsection, a telephone company’s procedures shall be deemed reasonable if the telephone company complies with the provisions governing customer proprietary network information in section 222 of the Communications Act of 1934, as amended, 47 U.S.C. § 222.
  8. Any violation of subsection (b) of this section: (1) Involving a single telephone record of up to not more than ten (10) telephone records of a resident of this state shall be a misdemeanor; and (2) Involving more than ten (10) telephone records of a resident of this state shall be a felony.
  9. Any violation of subsection (b) of this section shall be deemed an unfair or deceptive trade act or practice under chapter 13.1 of title 6.

History of Section. P.L. 2006, ch. 239, § 1; P.L. 2006, ch. 241, § 1; P.L. 2006, ch. 245, § 1.

Federal Act References.

Section 227 of the Victims of Child Abuse Act of 1990, referred to in subsection (d) of this section, was formerly codified as 42 U.S.C. § 13032 and was repealed by Act Oct. 13, 2008, Pub. L. No. 110-401, Title V, § 501(b)(1).

39-2-25. Contact voltage, detection, repair, and reporting.

  1. As used in this section, “contact voltage” means and/or refers to a voltage resulting from abnormal power system conditions that may be present between two (2) conductive surfaces that can be simultaneously contacted by members of the general public and/or their animals. Contact voltage is caused by power system fault current as it flows through the impedance of available fault current pathways. Faults contributing to contact voltage may be due to electric system deterioration or damage or improper installation. Contact voltage is of greatest concern in areas where underground electric-distribution systems exist, as faults on those systems may remain active for long periods of time before detection and repair, and therefore contact voltage is a potential shock hazard.
  2. Notwithstanding any general or public law, rule, regulation, or order to the contrary, the Rhode Island public utilities commission and the Rhode Island division of utilities and carriers shall initiate a proceeding within forty-five (45) days of the effective date of this section, to establish, after notice and provision of the opportunity for comment and public hearing, a contact voltage detection and repair program. The program shall require electric distribution companies to implement appropriate procedures to detect contact voltage on publicly accessible surfaces that could become energized by contact voltage due to faults in the underground distribution system. The program shall also recognize the potential for publicly accessible objects such as sidewalks, roadways, fences, storm drains, or other metallic gratings to become energized by faults to the underground distribution system. The program shall require every electric distribution company to adhere to appropriate procedures established by the commission to:
    1. Designate contact voltage risk areas.  The boundaries of such areas shall be approved by the commission and shall be based on the presence of underground electric distribution and situated in pedestrian-dense areas such as urban neighborhoods, commercial areas, central business districts, tourist heavy locations, and other places where pedestrians could be exposed to contact voltage;
    2. By June 30, 2013, conduct an initial survey of no less than forty percent (40%) of designated contact voltage risk areas, for contact voltage hazards on all conductive surfaces in public rights-of-way using equipment and technology as determined by the commission;
    3. Beginning July 1, 2013, annually survey no less than twenty percent (20%) of designated contact voltage risk areas, for contact voltage hazards on all conductive surfaces in public rights-of-way using equipment and technology as determined by the commission;
    4. Repair power system faults of the electric distribution company’s underground distribution system, that result in contact voltage appearing on publicly accessible surfaces of a level to be determined by the division of public utilities and carriers;
    5. If during a survey for contact voltage hazards on conductive surfaces in public rights-of-way, an energized surface is identified and the proximate cause is found not to be a utility company asset, then the utility company has no legal duty; however, the company may: clearly designate the area as a contact voltage hazard, and/or notify the account owner or owner of the asset causing the contact voltage hazard, and inform the owner of his or her obligation to perform all necessary repairs consistent with the terms contained in this section;
    6. Annually report on contact voltage findings, including, but not limited to, the number and type of energized objects on both company-owned and customer-owned assets; voltage level; corrective action taken; shocks that occur to members of the public or to pets owned by members of the public; and any other information that the commission deems appropriate.
  3. The commission shall require, as part of the program established pursuant to subsection (b), that electric distribution companies maintain records of the testing and subsequent maintenance or repairs performed by the electric distribution companies, and submit copies of the records to the commission, which shall make the records available for public inspection. The costs of this program shall be fully recovered by the utility company annually through a fully reconciling funding mechanism to be submitted annually to the commission for review and approval.
  4. The commission shall review and determine which equipment and technology shall be used for the surveying of contact voltage consistent with subsections (b)(2) and (b)(3). Such a review may include, but not be limited to, the use of mobile testing technology.
  5. Any electric distribution company that fails to comply with the requirements of the program established pursuant to subsection (b) shall be subject to a penalty to be determined by the commission and in compliance with this title.
  6. As used in this section, “electric distribution company” means a company as defined in § 39-1-2(a)(12) , but not including the Block Island Power Company or the Pascoag Utility District.
  7. The commission shall, within one hundred twenty (120) days of the effective date of this section, conclude the proceeding initiated pursuant to subsection (b). Within these one hundred twenty (120) days, the commission shall also issue an order establishing the contact voltage detection and repair program. Within one year after the issuance of the order establishing the program, and during each subsequent one-year period following the date of issuance of that order, the commission shall provide the legislature with a report on the effectiveness of the program, and any recommendations for any changes thereto, including whether to require the Block Island Power Company or the Pascoag Utility District to develop and participate in a contact voltage detection and repair program.

History of Section. P.L. 2012, ch. 162, § 1; P.L. 2012, ch. 173, § 1.

39-2-26. Emergency response plans.

Submission, approval, penalties for failure to file, and denial of recovery of service restoration costs for failure to implement emergency response plan.

  1. Each electric distribution company and natural gas distribution company conducting business in the state shall, on or before May 15, 2022, and annually thereafter, submit to the division an emergency response plan for review and approval. The emergency response plan shall be designed for the reasonably prompt restoration of service in the case of an emergency event, which is an event where widespread outages have occurred in the service area of the company due to storms or other causes beyond the control of the company.
  2. After review of an electric distribution or natural gas distribution company’s emergency response plan, the division may request that the company amend the plan. The division may open an investigation of the company’s plan. If, after hearings, the division finds a material deficiency in the plan, the division may order the company to make such modifications that it deems reasonably necessary to remedy the deficiency.
  3. Any investor-owned electric distribution or natural gas distribution company that fails to file its emergency response plan may be fined five hundred dollars ($500) for each day during which the failure continues. Any fines levied by the division shall be returned to ratepayers through distribution rates in a manner determined by the commission.
  4. Each investor-owned electric distribution or natural gas distribution company, when implementing an emergency response plan, shall designate an employee or employees to remain stationed at the Rhode Island emergency management agency’s emergency operations center for the duration of the emergency when the emergency operations center is activated in response to an emergency with an electric or gas service restoration component. In the event of a virtual activation of the emergency activation center, each investor-owned electric and natural gas distribution company shall designate an employee or employees to participate in the virtual activation. The employee or employees shall coordinate communications efforts with designated local and state emergency management officials, as required by this section.
  5. Each investor-owned electric distribution or natural gas distribution company, when implementing an emergency response plan, shall designate an employee or employees to serve as community liaisons for each municipality within their service territory. An investor-owned electric distribution or natural gas distribution company shall provide each community liaison with the necessary feeder map or maps outlining municipal substations and distribution networks and up-to-date customer outage reports at the time of designation as a community liaison. An investor-owned electric distribution or natural gas distribution company shall, at a minimum, provide each community liaison with three (3) customer outage report updates for each twenty-four-hour (24) period, to the liaison’s respective city or town. The community liaison shall utilize the maps and outage reports to respond to inquiries from state and local officials and relevant regulatory agencies.
  6. On or before October 1 of each year, every city or town shall notify each investor-owned electric distribution or natural gas distribution company and the Rhode Island emergency management agency of the name of the emergency management official or designee responsible for coordinating the emergency response during storm restoration. If a municipality does not have a designated emergency management official, the chief municipal officer shall designate one public safety official responsible for said emergency response.
  7. Notwithstanding any existing power or authority, the division may open an investigation to review the performance of any investor-owned electric distribution or natural gas distribution company in restoring service during an emergency event. If, after evidentiary hearings or other investigatory proceedings, the division finds that, as a result of the failure of the company to follow its approved emergency response plan, the length of the outages were materially longer than they would have been but for the company’s failure, the division shall recommend that the commission enter an order denying the recovery of all, or any part of, the service restoration costs through distribution rates, commensurate with the degree and impact of the service outage.
  8. Notwithstanding any general or special law or rule or regulation to the contrary, upon request by the commission, division and any emergency management agency each electric distribution or natural gas distribution company conducting business in the state shall provide periodic reports regarding emergency conditions and restoration performance during an emergency event consistent with orders of the commission and/or division.

History of Section. P.L. 2021, ch. 162, art. 8, § 1, effective July 6, 2021.

39-2-27. Standards of acceptable performance for emergency preparation and restoration of service.

The division shall open a docket and establish standards of acceptable performance for emergency preparation and restoration of service for each investor-owned electric and gas distribution company doing business in the state. The division shall levy a penalty not to exceed one hundred thousand dollars ($100,000) for each violation for each day that the violation of the division’s standards persists; provided, however, that the maximum penalty shall not exceed seven million five hundred thousand dollars ($7,500,000) for any related series of violations. The division shall open a full investigation, upon its own initiative. Nothing herein shall prohibit any affected city or town from filing a complaint with the division regarding a violation of the division’s standards of acceptable performance by an investor-owned electric distribution or natural gas distribution company; provided, however, that the petition shall be filed with the division no later than ninety (90) days after the violation has been remedied. After an initial review of the complaint, the division shall make a determination as to whether to open a full investigation.

History of Section. P.L. 2021, ch. 162, art. 8, § 1, effective July 6, 2021.

39-2-28. Levied penalties to be credited back to customers.

Any penalty levied by the division against an investor-owned electric distribution or natural gas distribution company for any violation of the division’s standards of acceptable performance for emergency preparation and restoration of service for electric and gas distribution companies shall be credited back to the company’s customers in a manner determined by the commission.

History of Section. P.L. 2021, ch. 162, art. 8, § 1, effective July 6, 2021.

Chapter 2.1 Location of Residential Gas Regulators and Gas Meters

39-2.1-1. Location of residential gas regulators and gas meters.

  1. Prior to the location or relocation of any residential gas regulator or gas meter, the public utility shall consult with the owner(s) of the property as to their preference concerning the most suitable location for such devices, and the public utility shall give preference to locations that are least visibly prominent.
  2. The public utility is hereby prohibited from installing gas regulators and/or gas meters on the visible front of any residential property or visible sides of the property that face a public right-of-way, unless permitted to do so by the owner or unless it is determined that there exists no prudent and feasible alternative to such location. In high-pressure systems, the gas regulator may be located in an unobtrusive exterior location that is not visible from a public right-of-way.

History of Section. P.L. 2009, ch. 110, § 1; P.L. 2009, ch. 184, § 1.

39-2.1-2. Location of gas regulators and/or gas meters in historic districts.

  1. The public utility is hereby prohibited from installing gas regulators or gas meters on the exterior of property located within a historic district, unless permitted to do so by the owner, and is hereby required to obtain a certificate of appropriateness from the historic district commission of any city or town that has been created by the city or town council in accordance with the provisions of chapter 24.1 of title 45, et seq.; provided, however, in high-pressure systems, the public utility may install gas regulators on the exterior of property, subject to the exterior location being approved by the owner and the historic district commission.
  2. For the purposes of this section, “property located within a historic district” means “a certified historic structure” as defined in § 44-33.2-2(1) .

History of Section. P.L. 2009, ch. 110, § 1; P.L. 2009, ch. 184, § 1.

39-2.1-3. Obligations of residential property owners.

  1. The owner(s) of any residential property within the interior of which a gas regulator or gas meter is located shall grant reasonable access to the public utility responsible for the maintenance of the regulator or meter in order to perform safety activities as required by law not less than every thirty-six (36) months. Any owner who denies the public utility access to the gas regulator or gas meter shall be subject to termination of service, and the public utility is hereby authorized to relocate the gas regulator or gas meter to the exterior of the property in accordance with the provisions of § 39-2.1-1 .
  2. The owner(s) of property with interior gas regulators or gas meters shall be required to sign a consent form agreeing to the terms set forth in subsection (a).
  3. The owner(s) of residential property are hereby authorized to paint exterior gas regulators, but not the regulator vents, and gas meters in order to blend with color of the property, and may landscape in front of the regulator and/or meter in order to conceal the location thereof.

History of Section. P.L. 2009, ch. 110, § 1; P.L. 2009, ch. 184, § 1.

Chapter 2.2 Rhode Island Utility Fair Share Roadway Repair Act

39-2.2-1. Short title.

This chapter shall be known and may be cited as the “Rhode Island Utility Fair Share Roadway Repair Act.”

History of Section. P.L. 2019, ch. 170, § 1; P.L. 2019, ch. 234, § 1.

39-2.2-2. Road repair by public utility or utility facility.

Any public utility as defined by § 39-1-2 or any utility facility as defined by chapter 8.1 of title 24 that shall alter, excavate, disrupt, or disturb a roadway shall be responsible for complete repaving and repair of the roadway from curbline to curbline or as required in accordance with the state or municipal utility permit requirements.

History of Section. P.L. 2019, ch. 170, § 1; P.L. 2019, ch. 234, § 1.

39-2.2-3. State road repair.

  1. Any repaving and repair of a state road required by § 39-2.2-2 shall be to the satisfaction of the director of the department of transportation.
  2. All utility work within and/or upon a state road or state right-of-way requires a state utility permit issued by the department of transportation prior to the work commencing. Any public utility or utility facility violating this section for non-emergency utility work without a state utility permit shall be fined five hundred dollars ($500) per incident in addition to the required road repaving and repair (restoration).
  3. As part of the state utility permit requirements:
    1. The public utility or utility facility shall obtain and submit to the state a performance bond in accordance with the state utility permit application requirements prior to the state utility permit being issued by the department of transportation; and
    2. The department of transportation will contract with pre-qualified vendors (Master Price Agreement) to conduct state-certified testing and inspection services on all utility work in accordance with the state utility permit requirements, and the public utility or utility facility shall reimburse the department of transportation for these costs.

History of Section. P.L. 2019, ch. 170, § 1; P.L. 2019, ch. 234, § 1.

39-2.2-4. Municipal road repair.

Any repaving and repair of a municipal road required by § 39-2.2-2 shall be in accordance with standards promulgated by the director of the department of transportation.

History of Section. P.L. 2019, ch. 170, § 1; P.L. 2019, ch. 234, § 1.

39-2.2-5. Recovery for failure to repair state road.

  1. If the director of the department of transportation deems any repaving or repair of a state road insufficient, defective, noncompliant, or incomplete and requests repairs, it will be the responsibility of the public utility or utility facility to complete the repairs to the satisfaction of the director of the department of transportation within thirty (30) days of being notified.
  2. If the public utility or utility facility fails to complete the repairs, the department of transportation will initiate the repairs through the performance bond claim process and/or recovering the amount required for the repairs from the public utility or utility facility.
  3. If any payment determined to be due from any public utility or utility facility for reparation, reconstruction, or repaving shall not be paid to the state within one year from the date of the determination, the state shall be entitled to recover the amount due in an action of debt, together with interest from six (6) months from the date of determination at the rate of ten percent (10%) per annum.

History of Section. P.L. 2019, ch. 170, § 1; P.L. 2019, ch. 234, § 1.

Chapter 3 Regulatory Powers of Administration

39-3-1. Services for which certificate of necessity required.

No public utility, whether privately owned or a quasi-public agency, shall distribute electricity or furnish or sell gas in any town or city in which any other public utility is at the time distributing electricity or furnishing or selling gas to the public generally, unless the public utility desiring to distribute electricity or to furnish or sell gas shall first have obtained a certificate from the division of public utilities and carriers certifying that public convenience and necessity require the same. Nothing contained in this chapter shall be construed to require a certificate to be obtained as a condition of distributing electricity or furnishing or selling gas in any town or city by any public utility that was actually distributing electricity or furnishing or selling gas to the public generally in the town or city on or prior to January 1, 1996, or by any successor to the public utility. The division shall not grant the certificate to any electric distribution company if the electric distribution company that is distributing electricity in the town or city offers to provide distribution service to all customers served by any nonregulated power producer, whether affiliated or not, on comparable prices and terms approved pursuant to this title, including the transition charge pursuant to § 39-1-27.4 . A copy of any application filed by the Block Island Power Company with either the commission or the division shall be provided by the Block Island Power Company to the New Shoreham town clerk by certified mail.

History of Section. G.L. 1923, ch. 253, § 59; P.L. 1926, ch. 767, § 1; G.L. 1938, ch. 122, § 55; G.L. 1956, § 39-3-1 ; P.L. 1971, ch. 265, § 5; P.L. 1972, ch. 205, § 5; P.L. 1996, ch. 316, § 1; P.L. 1997, ch. 326, § 106; P.L. 2002, ch. 73, § 1; P.L. 2002, ch. 361, § 1.

Cross References.

Definitions, § 39-1-2 .

Functions of department of business regulation, § 42-14-2 .

Comparative Legislation.

Supervision and regulation:

Conn. Gen. Stat. § 16-1 et seq.

Mass. Ann. Laws ch. 25, § 1 et seq.; ch. 159, § 1 et seq.

Collateral References.

Incidental provision of transportation services, by party not primarily in that business, as common carriage subject to state regulatory control. 87 A.L.R.4th 638.

39-3-1.1. Purchasing cooperatives.

Purchasing cooperatives may at any time be organized consisting of any group of electricity consumers for the purpose of negotiating for electric power from nonregulated power producers. The purchasing cooperatives shall be considered to be associations of electricity consumers organized solely for the purpose of negotiating the purchase of electric power by members of the cooperative. Purchasing cooperatives are specifically not required to be legal entities and are hereby prohibited from engaging in resale of electric power. Electricity consumers will maintain individual accounts with the nonregulated power producer with which a contract is concluded. Electricity consumers may withdraw from a purchasing cooperative at any time by providing thirty (30) days’ notice to the cooperative and to nonregulated power producers with which a purchasing cooperative has reached an agreement. Nothing in this section shall prevent a cooperative from becoming a legal entity or utilizing a legal entity to negotiate for rates for the purchasing cooperative.

History of Section. P.L. 1996, ch. 316, § 1; P.L. 1997, ch. 326, § 106.

39-3-1.2. Aggregation of electrical load by municipality or group of municipalities.

    1. The legislative authority of a municipality may adopt an ordinance or resolution, under which it may aggregate in accordance with this section one or more classes of the retail electrical loads located, respectively, within the municipality or town and, for that purpose, may enter into service agreements to facilitate for those loads the sale and purchase of electricity. The legislative authority also may exercise this authority jointly with any other legislative authority. An ordinance or resolution under this section shall specify whether the aggregation will occur only with the prior consent of each person owning, occupying, controlling, or using an electric load center proposed to be aggregated or will occur automatically for all persons pursuant to the opt-out requirements of this section. Nothing in this section, however, authorizes the aggregation of retail electric loads of an electric load center that is located in the certified territory of a nonprofit electric supplier or an electric load center served by transmission or distribution facilities of a municipal electric utility.
    2. No legislative authority pursuant to an ordinance or resolution under this section that provides for automatic aggregation as described in this section, shall aggregate the electrical load of any electric load center located within its jurisdiction unless it in advance clearly discloses to the person owning, occupying, controlling, or using the load center that the person will be enrolled automatically in the aggregation program and will remain so enrolled unless the person affirmatively elects by a stated procedure not to be so enrolled. The disclosure shall state prominently the rates, charges, and other terms and conditions of enrollment. The stated procedure shall allow any person enrolled in the aggregation program the opportunity, at a minimum, to opt-out of the program every two (2) years, without paying a switching fee. Any person who leaves the aggregation program pursuant to the stated procedure shall default to the last-resort service until the person chooses an alternative supplier.
  1. A governmental aggregator under this section is not a public utility engaging in the wholesale purchase and resale of electricity, and the aggregated service is not a wholesale utility transaction. A governmental aggregator shall be subject to supervision and regulation by the commission only to the extent of any competitive retail electric service it provides and commission authority.
  2. A town may initiate a process to authorize aggregation by a majority vote of a town meeting or of the town council. A city may initiate a process to authorize aggregation by a majority vote of the city council, with the approval of the mayor, or the city manager. Two (2) or more municipalities may, as a group, initiate a process jointly to authorize aggregation by a majority vote of each particular municipality as required in this section.
  3. Upon the applicable requisite authority under this section, the legislative authority shall develop a plan of operation and governance for the aggregation program so authorized. Before adopting a plan under this section, the legislative authority shall hold at least one public hearing on the plan. Before the hearing, the legislative authority shall publish notice of the hearing once a week for two (2) consecutive weeks in a newspaper of general circulation in the jurisdiction. The notice shall summarize the plan and state the date, time, and location of any hearing. A municipality or group of municipalities establishing load aggregation pursuant to this section shall develop a plan, for review by its citizens, detailing the process and consequences of aggregation. The plan shall identify which classes of customers may participate, based on their applicable electric distribution company tariff or rate schedule. Any municipal load aggregation plan established pursuant to this section shall provide for universal access to all applicable customers and equitable treatment of applicable classes of customers and shall meet any requirements established by law or the commission concerning aggregated service. The plan shall be filed with the commission, for its final review and approval, and shall include, without limitation, an organizational structure of the program, its operations, and its funding; the process for establishing rates and allocating costs among participants; the methods for entering and terminating agreements with other entities; the rights and responsibilities of program participants; and termination of the program. The plan must also include the terms and conditions under which retail customers who or that have chosen to opt-out of the aggregated service may take service from the aggregated entity. At the time of the legislative authority’s filing of the plan with the commission, a copy of the proposed plan filing shall be provided to the electric distribution company whose customers would be included in the plan. Prior to its decision, the commission shall conduct a public hearing. Following approval of the plan, the legislative authority may solicit bids from nonregulated power producers pursuant to the methods established by the plan. The legislative authority shall report the results of this solicitation and proposed agreement awards to the commission. The legislative authority shall have the right to terminate the operation of the plan by placing its customers on last-resort service. If the legislative authority terminates the operation of the plan and places customers on last-resort service, a municipality seeking to form a new municipal aggregation load must submit a new plan to the commission for approval, in accordance with this section, before the customers may enroll in a new aggregation program.
    1. Any retail customer in a municipality with an approved aggregation plan may elect instead to receive retail supply from another licensed retail supplier or from the local distribution company. Within thirty (30) days of the date the aggregated entity is fully operational, ratepayers who or that have not affirmatively elected an alternative authorized supplier shall be transferred to the aggregated entity subject to the opt-out provision in this section. Following adoption of aggregation as specified above, the program shall allow any retail customer to opt-out and choose any supplier or provider that the retail customer wishes. Nothing in this section shall be construed as authorizing any city or town or any municipal retail load aggregator to restrict the ability of retail electric customers to obtain or receive service from any authorized provider of it.
    2. It shall be the duty of the aggregated entity to fully inform participating ratepayers in advance of automatic enrollment that they are to be automatically enrolled and that they have the right to opt-out of the aggregated entity without penalty. In addition, such disclosure shall prominently state all charges to be made and shall include full disclosure of the standard-offer rate, how to access it, and the fact that it is available to them without penalty, if they are currently on standard-offer service. The commission shall furnish, without charge, to any citizen a list of all other supply options available to them in a meaningful format that shall enable comparison of price and product.
  4. The municipality or group of municipalities shall, within two (2) years of approval of its plan, or such further time as the commission may allow, provide written notice to the commission that its plan is implemented. The commission may revoke certification of the aggregation plan if the municipality or group of municipalities fails to substantially implement the plan.
  5. The commission may, from time to time, promulgate rules by which the legislative authority may request information from the electric distribution company or companies whose customers would be included in its plan. These rules shall ensure that municipalities have reasonable and timely access to information pertinent to the formation of the plan and solicitation of bids to serve customers; that confidentiality of individuals is protected; and that charges for production of data are reasonable and not unduly burdensome to the legislative authority.

History of Section. P.L. 2002, ch. 144, § 5; P.L. 2017, ch. 390, § 1; P.L. 2017, ch. 422, § 1; P.L. 2020, ch. 79, art. 1, § 4.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

39-3-2. Persons and companies eligible for certificates.

No certificate shall be issued to any person who is not a citizen resident within this state, or to any association, unless all members of the association are citizens of this state, or to any corporation unless the corporation has been created by special act of the general assembly upon petition for the same. Notice of the pendency of the petition shall be given in such manner as the general assembly may by general law or special act prescribe; provided, however, that the prohibition contained in this section shall not apply to any corporation lawfully doing business in this state as a public utility prior to March 1, 1926.

History of Section. G.L. 1923, ch. 253, § 59; P.L. 1926, ch. 767, § 1; G.L. 1938, ch. 122, § 55; G.L. 1956, § 39-3-2 ; P.L. 1971, ch. 265, § 5; P.L. 1972, ch. 205, § 5.

Cross References.

Notice of pendency of petition, § 22-9-2 .

39-3-3. Certificate requirement for water carriers.

  1. No common carrier of persons and/or property operating upon water between termini within this state shall hereafter furnish or sell its services unless the common carrier shall first have made application to and obtained a certificate from the division certifying that public convenience and necessity required the services. A filing fee of one hundred dollars ($100) must accompany all filings made pursuant to this section. Certificates issued under this section shall be renewed before the close of business on December 31 of each calendar year. The renewal fee shall be one hundred dollars ($100) and shall be submitted with the renewal form. All revenues received under this section shall be deposited as general revenues; provided, however, that this fee shall not apply to any city or town, to any agency or department of any city or town of the state, or to any nonprofit corporation in the tourism industry.
  2. A copy of any application filed with either the commission or the division by a water common carrier that includes a New Shoreham terminus shall be provided by the water common carrier to the New Shoreham town clerk by certified mail.
  3. Notwithstanding any provision of §§ 39-5-1 and/or 42-35-15 , or any other provision of the general or public laws to the contrary, no agency nor reviewing court may order an interlocutory stay of any order of the division with respect to an application entered under § 39-3-3.1 , and/or certificate under § 39-3-3.1 . Nothing herein shall be construed to limit the right of any petitioner, public utility, party in interest, or other person or entity aggrieved by an order of the division entered under § 39-3-3.1, from seeking judicial review in accordance with §§ 39-5-1 and/or 42-35-15 .

History of Section. G.L. 1938, ch. 122, § 55; P.L. 1942, ch. 1249, § 1; P.L. 1951, ch. 2795, § 1; P.L. 1954, ch. 3403, § 1; G.L. 1956, § 39-3-3 ; P.L. 1992, ch. 133, art. 34, § 4; P.L. 1995, ch. 370, art. 40, § 117; P.L. 2002, ch. 73, § 1; P.L. 2002, ch. 361, § 1; P.L. 2004, ch. 580, § 1.

NOTES TO DECISIONS

Certificate Required.

Water transport company had to obtain a new certificate of public necessity and convenience (CPNC) under R.I. Gen. Laws § 39-3-3 prior to entering the high-speed water ferry market despite its exemption under R.I. Gen. Laws § 39-3-4 because a high-speed ferry was a material alteration in the scope of the company’s business and its original CPNC. Interstate Navigation Co. v. Div. of Pub. Utils. & Carriers of R.I., 824 A.2d 1282, 2003 R.I. LEXIS 167 (2003).

39-3-3.1. Petition for certificate by water carrier — Notice of pendency.

A petition in writing for the issuance of a certificate under § 39-3-3 shall first be filed with the division of public utilities and carriers by the common carrier desiring to obtain such certificate. Upon receipt of the petition, the division shall fix a time and place of hearing thereon and shall give notice as it may prescribe of the pendency of the petition and of the time and place of a hearing thereon to the petitioner, to the mayor and also any city manager of each city, and to the president of the town council and also any town manager for each town, in which the petitioner desires to pick up or discharge passengers. The division shall also publish a notice of the hearing at least ten (10) days prior to the date thereof in a newspaper of general circulation in each city or town in which the petitioner desires to pick up or discharge passengers. After the hearing the division shall enter an order granting or refusing to grant the petition.

History of Section. P.L. 1986, ch. 48, § 1; P.L. 1986, ch. 504, § 2.

39-3-4. Water carriers entitled to certificate as of right.

Any person, corporation, or authority who or that has lawfully been doing business as a common carrier of persons and/or property upon water between termini within this state during a seven-year period, seasonally or otherwise, prior to April 30, 1943, and any cooperative association that, although not yet operating between its proposed termini within this state, has been formed for the purpose of providing a means of transportation by water, and that has been incorporated under the provisions of chapter 8 of title 7, prior to April 30, 1954, shall be entitled as a matter of right and without public hearing thereon, to receive a certificate of convenience and necessity from the division setting forth the scope and termini of its operation.

History of Section. G.L. 1938, ch. 122, § 55; P.L. 1942, ch. 1249, § 1; 1951, ch. 2795, § 1; P.L. 1954, ch. 3403, § 1; G.L. 1956, § 39-3-4 .

NOTES TO DECISIONS

Limitation on Exemption.

Plain meaning of R.I. Gen. Laws § 39-3-4 permits only those carriers incorporated before April 30, 1954, to avoid the public hearing requirement before acquiring a certificate of public convenience and necessity; that provision does not permit the carrier to change the scope and type of service that is set out in its original certificate without demonstrating that such a change will benefit the public convenience and necessity. Interstate Navigation Co. v. Div. of Pub. Utils. & Carriers of R.I., 824 A.2d 1282, 2003 R.I. LEXIS 167 (2003).

Water transport company had to obtain a new certificate of public necessity and convenience (CPNC) under R.I. Gen. Laws § 39-3-3 prior to entering the high-speed water ferry market despite its exemption under R.I. Gen. Laws § 39-3-4 because a high-speed ferry was a material alteration in the scope of the company’s business and in the scope of its original CPNC. Interstate Navigation Co. v. Div. of Pub. Utils. & Carriers of R.I., 824 A.2d 1282, 2003 R.I. LEXIS 167 (2003).

39-3-5. Petition for certificate of necessity — Notice of pendency.

A petition in writing for the issuance of a certificate under § 39-3-1 shall first be filed with the division of public utilities and carriers by the public utility desiring to obtain the certificate. Upon receipt of the petition, the division shall fix a time and a place for a hearing thereon, and shall give such notice as it may prescribe of the pendency of the petition and of the time and place of the hearing thereon to the petitioner, to the mayor of each city, and to the president of the town council of each town, in which the petitioner desires to furnish or sell gas or electricity, and to any public utility furnishing or selling gas or electricity in the town or city, and shall give a public hearing upon the petition. After the hearing the division of public utilities and carriers shall enter an order granting or refusing to grant the petition.

History of Section. G.L. 1923, ch. 253, § 60; P.L. 1926, ch. 767, § 1; G.L. 1938, ch. 122, § 56; G.L. 1956, § 39-3-5 ; P.L. 1971, ch. 265, § 6; P.L. 1972, ch. 205, § 5.

39-3-6. Appeals.

Any petitioner or any public utility or other party in interest aggrieved by any order of the division granting or refusing to grant the petition, or rescinding, altering, or amending any previous action of the division, may appeal to the superior court as provided in § 39-5-1 , and all the other provisions of chapters 1 — 5 of this title relative to appeals shall apply to appeals from any order.

History of Section. P.L. 1971, ch. 265, § 6; P.L. 1972, ch. 205, § 5; P.L. 1984, ch. 81, § 12.

Collateral References.

Representation of another before state public utilities or service commission as involving practice of law. 13 A.L.R.3d 812.

39-3-7. Fixing standards for service.

The commission shall periodically, after having given each public utility concerned reasonable notice and an opportunity to be heard, determine and fix by order the standard amount, quality, pressure, initial voltage, and character of each kind of product or service to be furnished or rendered by each public utility, and standard condition or conditions pertaining to furnishing or rendering the same, and thereafter each public utility shall furnish and render the same accordingly. The hearing prescribed by this section may be held simultaneously with the hearing prescribed by § 39-3-11 .

History of Section. P.L. 1912, ch. 795, § 45; G.L. 1923, ch. 253, § 45; G.L. 1938, ch. 122, § 42; G.L. 1956, § 39-3-7 ; P.L. 1969, ch. 240, § 5.

Collateral References.

Liability of electric utility to nonpatron for interruption or failure of power. 54 A.L.R.4th 667.

39-3-7.1. Prohibited practices.

The use of “master-meters,” so-called, in apartment or tenement houses containing more than ten (10) apartments or dwelling units is hereby prohibited; provided, however, that this section shall only apply to apartment houses, construction of which is commenced after July 1, 1977. Each apartment or dwelling unit shall have a measuring device or meter for the purpose of measuring the electricity used only by that apartment. The commission shall promulgate all necessary rules and regulations to carry out the purposes and provisions of this section; provided, however, that this section shall not apply to the multifamily dwellings constructed for the exclusive use of persons who are elderly and/or disabled through public financing, whenever the organization sponsoring the construction shall elect to use a single meter for all, or designated portions, of the housing.

History of Section. P.L. 1976, ch. 222, § 1; P.L. 1979, ch. 387, § 1; P.L. 1999, ch. 83, § 88; P.L. 1999, ch. 130, § 88.

39-3-8. Standards for measurement and testing of service.

The division shall ascertain and fix adequate and serviceable standards for the measurement of the quality, pressure, initial voltage, or other condition pertaining to the supply of the product or service rendered by any public utility, and prescribe reasonable regulations for the examination and testing of the product or service and for the measurement thereof. It shall establish reasonable rules, regulations, specifications, and standards to secure accuracy of all meters and appliances for measurement, and every public utility is required to carry into effect all orders issued by the division relative thereto.

History of Section. P.L. 1912, ch. 795, § 46; G.L. 1923, ch. 253, § 46; G.L. 1938, ch. 122, § 43; G.L. 1956, § 39-3-8 .

39-3-9. Testing of measuring devices.

The division shall provide for the examination and testing of any and all appliances used for measuring any product or service of any public utility. Any consumer or user may have any appliances tested upon payment of the fees fixed by the division. The division shall declare and establish reasonable fees to be paid for the testing of appliances on the request of the consumers or users, the fee to be paid by the consumer or user at the time of his or her request, but to be paid by the public utility and repaid to the consumer or user if the appliances be found defective or incorrect or to the disadvantage of the consumer or user. A meter shall be deemed correct for the purpose of this section if it appears from the examination or test that it does not vary more than two percent (2%) from the standard approved by the division.

History of Section. P.L. 1912, ch. 795, § 47; G.L. 1923, ch. 253, § 47; G.L. 1938, ch. 122, § 44; G.L. 1956, § 39-3-9 .

39-3-10. Filing and availability of rate schedules.

  1. Every public utility shall file with the public utilities administrator, within a time to be fixed by the administrator, schedules that shall be open to public inspection, showing all rates, tolls, and charges it has established and that are in force at the time for any service performed by it within the state, or for any service in connection therewith or performed by any public utility controlled or operated by it. A copy of so much of the schedules as the administrator shall deem necessary for the use of the public shall be printed in plain type, or typewritten, and kept on file in every station or office of the public utility where payments are made by the consumers or users, open to the public in such form and place as to be readily accessible and conveniently inspected, and as the administrator may order. The administrator may determine and prescribe the form in which the schedules, required by this section to be kept open to the public inspection, shall be prepared and arranged, provided, that with respect to public utilities subject to the federal Interstate Commerce Act, 49 U.S.C. § 501 et seq., so-called, the form of the schedules shall be that as from time to time prescribed by the Interstate Commerce Commission.
  2. Notwithstanding subsection (a) herein, a public utility may post on its website the rates, tolls, and charges of any retail telecommunications service performed by it within the state for any business customers. Subsection (a) herein shall not apply to any service so posted, and such public utility shall not be required to file with the public utilities administrator or publish any schedule or tariff for such service. Upon written notice to the public utilities administrator, the public utility may withdraw any schedule or tariff previously filed with the administrator for any service so posted.
  3. Nothing in subsection (b) herein or in § 39-2-5(12) shall derogate from the statutory authority of the commission or of the division, including, but not limited to, the authority to protect ratepayers from unreasonable rates. Nor shall anything in subsection (b) herein or in § 39-2-5(12) derogate from the common law or statutory authority of the attorney general, including, but not limited to, the authority to enforce consumer protection or unfair or deceptive trade practice statutes and regulations.

History of Section. P.L. 1912, ch. 795, § 48; P.L. 1918, ch. 1651, § 1; G.L. 1923, ch. 253, § 48; G.L. 1938, ch. 122, § 45; P.L. 1949, ch. 2172, § 1; G.L. 1956, § 39-3-10 ; P.L. 2011, ch. 132, § 2; P.L. 2011, ch. 148, § 2.

NOTES TO DECISIONS

Construction.

Although this section may be construed as a “file and run” statute wherein a start-up utility may simply file a rate with the public utilities commission without requiring initial approval of that rate, the commission has the authority to sua sponte investigate the rates of a public utility at any time. In re Island Hi-Speed Ferry, LLC, 746 A.2d 1240, 2000 R.I. LEXIS 47 (2000).

Collateral References.

Charitable contributions by public utility as part of operating expense. 59 A.L.R.3d 941.

Full rate carrier’s right to collect, notwithstanding its error as to amount of charges and its failure to post schedule of rates. 83 A.L.R. 255; 88 A.L.R.2d 1375.

Validity of “fuel adjustment” or similar clauses authorizing electric utility to pass on increased costs of fuel to its customers. 83 A.L.R.3d 933.

39-3-11. Notice of change in rates — Suspension of change — Hearings.

  1. No change shall be made in the rates, tolls, and charges that have been filed and published by any public utility in compliance with the requirements of § 39-3-10 , except after thirty (30) days’ notice to the commission and to the public published as provided in § 39-3-10 , which shall plainly state the changes proposed to be made in the schedule then in force, and the time when the changed rates, tolls, or charges will go into effect. Whenever the commission receives notice of any change or changes proposed to be made in any schedule filed under the provisions of § 39-3-10, the commission shall hold a public hearing and make investigation as to the propriety of the proposed change or changes. After notice of any investigation, the commission shall have power, by any order served upon the public utility affected, to suspend the taking effect of the change or changes pending the decision thereof, but not for a longer period than eight (8) months beyond the time when the change or changes would otherwise take effect. Each hearing and investigation shall be conducted as expeditiously as may be practicable, and with a minimum of delay. Within ninety (90) days after the completion of any hearing, the commission shall make such order in reference to any proposed rate, toll, or charge as may be proper. Notwithstanding the provisions of this section, the commission shall periodically hold a public hearing and make investigation as to the propriety of rates when charged by any public utility and shall make such order in reference to the rate, toll, or charge as may be just. The hearing prescribed by this section may be held simultaneously with the hearing prescribed by § 39-3-7 . In the event of an appeal from an order of the commission in any hearing under this section, the order shall remain in full force and effect during the pendency of said appeal.
  2. Upon receipt from a common carrier of persons and/or property upon water of a notice of any change proposed to be made in any schedule filed pursuant to § 39-3-10 , the commission shall give notice as it may prescribe of the pendency of the proposal and of the time and place of the hearing thereon to the mayor and also any city manager of each city, and to the president of the town council and also any town manager of each town in which the carrier picks up or discharges passengers. The commission shall also publish a notice of the hearing at least ten (10) days prior to the date thereof in a newspaper of general circulation in each city or town in which the carrier picks up or discharges passengers. In all other respects, hearings and investigations with respect to the proposals by the carriers shall be governed by the provisions of subsection (a) of this section.
  3. The Kent County Water Authority shall provide notice by certified mail of rate increase requests to the several fire districts that purchase water from the authority.
  4. Costs incurred by electric distribution companies for filing rates, tolls, and charges, for participating in hearings and investigations prior to December 31, 2000, or for appealing commission decisions rendered prior to December 31, 2000, pursuant to this section shall not be included in the rates, tolls, or charges established by the commission pursuant to this section.

History of Section. P.L. 1912, ch. 795, § 48; P.L. 1918, ch. 1651, § 1; G.L. 1923, ch. 253, § 48; G.L. 1938, ch. 122, § 45; P.L. 1949, ch. 2172, § 1; G.L. 1956, § 39-3-11 ; P.L. 1969, ch. 240, § 5; P.L. 1977, ch. 236, § 2; P.L. 1986, ch. 48, § 2; P.L. 1986, ch. 504, § 2; P.L. 1995, ch. 291, § 1; P.L. 1996, ch. 316, § 1; P.L. 1997, ch. 326, § 106; P.L. 2009, ch. 56, § 1; P.L. 2009, ch. 79, § 1.

Cross References.

Rate increases during term of municipal franchise prohibited, § 39-17-6 .

Law Reviews.

2000 Survey of Rhode Island Law, see 6 Roger Williams U. L. Rev. 593 (2001).

NOTES TO DECISIONS

Applicability.

Town’s contention that the notice given by the water company and the public utilities commission of the changes in the initial rate increase filing failed to comply with § 42-35-9 was without merit where the company filed its request for a rate increase pursuant to this section, and consequently all action subsequently taken by the company and the public utilities and carrier commission with respect to the initial filing was subject to the provisions of this section, including both the company’s obligation to notify its customers of the filing, and the commission’s obligation to hold a public hearing on the propriety of the rate increase; and therefore, the notice requirements under the APA were inapplicable when title 39 explicitly directed the parties on the appropriate course of action in a rate proceeding. Narragansett v. Malachowski, 621 A.2d 190, 1993 R.I. LEXIS 63 (1993).

Delayed Decision.

The 90-day provision of this section was mandatory, and where the commission allowed more than 90 days to pass between the completion of its rate hearings and the issuance of its decision and order, the utility was entitled to collect retroactive charges for the period of delay. Bristol County Water Co. v. Public Utils. Comm'n, 117 R.I. 89 , 363 A.2d 444, 1976 R.I. LEXIS 1604 (1976).

Effect of Denied Increase.

The public utilities commission discharged its duty to suspend a proposed schedule of rates by rejecting the schedule within eight months of their being proposed. Moreover, this section does not require the commission to put into effect substitute rates offered after the proposed rates have been rejected since there is no requirement that a rate become effective within the eight-month period, but merely that an order issue. Providence Gas Co. v. Burke, 475 A.2d 193, 1984 R.I. LEXIS 460 (1984).

Federal Preemption.

The state’s authority to regulate interstate wholesale utility rates was preempted by congress’s enactment of the Federal Power Act, hence jurisdiction to determine the reasonableness of the wholesale rate charged by the New England Power Company to the Narragansett Electric Company rests exclusively with the federal power commission. Narragansett Elec. Co. v. Burke, 119 R.I. 559 , 381 A.2d 1358, 1977 R.I. LEXIS 2060 (1977), cert. denied, 435 U.S. 972, 98 S. Ct. 1614, 56 L. Ed. 2d 63, 1978 U.S. LEXIS 1507 (1978).

Hearing.

Where the commission held a public hearing concerning the refund process under a purchase gas price adjustment clause, but failed to give the parties clear and simple notice of the subject matter to be considered at the hearing as required by § 42-35-9 , the commission’s attempted amendment of the adjustment clause was a nullity. Providence Gas Co. v. Burke, 119 R.I. 487 , 380 A.2d 1334, 1977 R.I. LEXIS 2055 (1977).

The latter segment of this section concerning periodic public hearings does not authorize the commission to stay continued operation of an effective tariff pending the outcome of the hearing; the tariff will continue in operation until a hearing is held and an order has been entered. Providence Gas Co. v. Burke, 119 R.I. 487 , 380 A.2d 1334, 1977 R.I. LEXIS 2055 (1977).

A “public hearing” concerning the propriety of rates under this section must be commenced and conducted in accordance with the provisions of chapter 35 of title 42 concerning administrative procedures, since the type of action contemplated by this section constitutes ratemaking and thus falls within the definition of “contested case,” § 42-35-1 . Providence Gas Co. v. Burke, 119 R.I. 487 , 380 A.2d 1334, 1977 R.I. LEXIS 2055 (1977).

This section does not require public hearings where such hearings would be empty formalities convened merely to deny tariff requests which, on their face, are without acceptable supporting evidence. Bristol & Warren Gas Co. v. Harsch, 119 R.I. 807 , 384 A.2d 298, 1978 R.I. LEXIS 625 (1978).

Where public utility applied for a rate case hearing and the public utilities commission ordered the rate case suspended then merged the case with another involving the utility’s violations of previous commission orders involving accounting practices, the commission’s order to merge the case, in effect, was a dismissal of the rate case without a hearing in violation of both the commission’s statutory duty and the utility’s right to due process. Bristol & Warren Gas Co. v. Burke, 439 A.2d 246, 1981 R.I. LEXIS 1414 (1981).

The commission entertains jurisdiction to hear rate-change applications of ferries. O'Neil v. Interstate Navigation Co., 565 A.2d 530, 1989 R.I. LEXIS 151 (1989).

Initial Rate Filing.

Because, under this section the public utilities commission has the authority to review and approve the rates of a public utility, whether an initial rate or a proposed change of existing rates, and is mandated to periodically review and hold public hearings respecting those rates in the absence of any proposed rate change, the commission has subject matter jurisdiction to determine the propriety of an initial rate filing of a public utility. In re Island Hi-Speed Ferry, LLC, 746 A.2d 1240, 2000 R.I. LEXIS 47 (2000).

Investigation of Utility.

The administrator (now commission) is not required to have an engineer investigate the utility or an accountant to check its books in a hearing for the increase of rates. Jamestown v. Kennelly, 80 R.I. 177 , 81 R.I. 177 , 100 A.2d 649, 1953 R.I. LEXIS 32 (1953).

Losses of Utility.

In determination of reasonable rate to be charged to the public, a loss sustained by utility in constructing a main for the purpose of acquiring new business which did not materialize could not be charged to the public. Public Utils. Comm'n v. East Providence Water Co., 48 R.I. 376 , 136 A. 447, 1927 R.I. LEXIS 142 (1927).

Deficits incurred in furnishing service at a low rate to an industry owned by the owners of the utility and from transferring valuable rights to the industry could not be used to justify an increase in rates. Public Utils. Comm'n v. East Providence Water Co., 48 R.I. 376 , 136 A. 447, 1927 R.I. LEXIS 142 (1927).

Supreme court upheld commission ruling where subsidiary utility sought rate increase to insure cash working capital adequate to cover time lag between payment of its bills for power purchases from its interstate supplier and receipt of payment from its customers, and commission disallowed the increase because the subsidiary was unnecessarily paying its bills before the end of the “grace period” allowed by its supplier, thereby losing interest. Narragansett Elec. Co. v. Harsch, 117 R.I. 395 , 368 A.2d 1194, 1977 R.I. LEXIS 1707 (1977).

The public utility commission may treat a power company’s proposed rate increase based upon the increased cost of purchasing electrical power as it treats other filings for charged rates under this section and investigate the overall financial structure of the power company to determine whether the company has experienced savings in other areas which might offset the increased price for power. Narragansett Elec. Co. v. Burke, 119 R.I. 559 , 381 A.2d 1358, 1977 R.I. LEXIS 2060 (1977), cert. denied, 435 U.S. 972, 98 S. Ct. 1614, 56 L. Ed. 2d 63, 1978 U.S. LEXIS 1507 (1978).

Where the water company requested the setting of rates based partially upon past losses, this fell clearly within the general proscription against retroactive ratemaking, even though the company’s loss might have been attributable to the inevitable result of regulatory lag. Bristol County Water Co. v. Harsch, 120 R.I. 223 , 386 A.2d 1103, 1978 R.I. LEXIS 658 (1978).

— Retroactive Recovery of Losses.

The rule against retroactive ratemaking does not apply to prevent a utility company from recovering unusual and nonrecurring expenses related to extraordinarily severe storms. Narragansett Elec. Co. v. Burke, 415 A.2d 177, 1980 R.I. LEXIS 1678 (1980).

Mandamus.

Where the public utilities commission refused to act on an application for an increase in rates on the ground that it did not have jurisdiction and there was some doubt as to the right of appeal, mandamus was a proper remedy. East Providence Water Co. v. Public Utils. Comm'n, 46 R.I. 458 , 128 A. 556, 1925 R.I. LEXIS 30 (1925).

Meter Charges.

The commission may fix a service charge for gas meters and this does not violate § 11-35-10 , since the latter provision penalizes the wrongful collection of a greater amount than is due on inspection of a meter and does not relate to a uniform rate. Rivelli v. Providence Gas Co., 44 R.I. 76 , 115 A. 461, 1921 R.I. LEXIS 51 (1921).

Notice.

Where town was on notice as of March 15, 1991 that public utilities company was requesting a rate increase, and thereafter, on or about May 13, 1991, the public utilities commission mailed a copy of the schedule to the manager of the town that included a date for intervenors, if any, to file testimony, and a public hearing was subsequently held on August 20, 1991, and consequently the water company and public utilities and carriers division filed an agreement and settlement of the increased rates, the company fully complied with the statutory obligations and the town’s claim that the agreement and settlement triggered additional notice due to the increase in rates was without merit, for the increase did not terminate the original filing of rates or signify the beginning of a new filing. Narragansett v. Malachowski, 621 A.2d 190, 1993 R.I. LEXIS 63 (1993).

Period of Time Considered.

In the rate making process, rates are fixed not only for the moment but for a reasonable length of time in the future. New Eng. Tel. & Tel. Co. v. Kennelly, 78 R.I. 211 , 80 A.2d 891, 1951 R.I. LEXIS 60 (1951).

Where a utility’s petition for rate increases followed by two and one-half months a determination of rates by the public utility board, there was not such a length of time from such prior determination as would indicate whether those rates were confiscatory. New Eng. Tel. & Tel. Co. v. Kennelly, 78 R.I. 211 , 80 A.2d 891, 1951 R.I. LEXIS 60 (1951).

The reasonableness of the length of time between a utility’s requests for rate increases is an issue of fact for the commission to determine. Roberts v. Narragansett Elec. Co., 490 A.2d 506, 1985 R.I. LEXIS 485 (1985).

An application filed within three months of a prior rate order is not, as a matter of law, unreasonable. Roberts v. Narragansett Elec. Co., 490 A.2d 506, 1985 R.I. LEXIS 485 (1985).

Prospective Application of Increase.

Increased utility rates cannot be retroactively applied by charging a customer for services already rendered; instead, increased rates should be applied prospectively so that consumers will be billed for energy consumed only after the commission has approved the new rates. Providence Gas Co. v. Burke, 475 A.2d 193, 1984 R.I. LEXIS 460 (1984).

— Construction Work in Progress.

Construction work in progress at the end of the test year is not includable within the rate base, since it did not represent used and useful property that was presently being devoted to providing the regulated service. Providence Gas Co. v. Burman, 119 R.I. 78 , 376 A.2d 687, 1977 R.I. LEXIS 1874 (1977).

— Data Considered.

Although the commission sets rates on the basis of data accumulated during specified test periods, when known and measurable changes affect with certainty the test-period data, the commission may, within its discretion, give effect to those changes. Narragansett Elec. Co. v. Harsch, 117 R.I. 395 , 368 A.2d 1194, 1977 R.I. LEXIS 1707 (1977).

Where a utility’s post-test year bond issue threatened to raise its interest expenses, and consequently its federal interest payment tax deduction, the commission properly took the increased interest deduction into account in setting the utility’s rates, and was not restricted to a consideration of data accumulated only during the test year. Narragansett Elec. Co. v. Harsch, 117 R.I. 395 , 368 A.2d 1194, 1977 R.I. LEXIS 1707 (1977).

An interim rate reduction based on historical experience rather than on the utility’s prediction of future revenues and expenses was not illegal, arbitrary or unreasonable. Narragansett Elec. Co. v. Burke, 505 A.2d 1147, 1986 R.I. LEXIS 421 (1986).

Quality of Product.

Where the quality of the water company’s product was poor, the commission properly denied a rate increase. Bristol County Water Co. v. Harsch, 120 R.I. 223 , 386 A.2d 1103, 1978 R.I. LEXIS 658 (1978).

Rate Base.

In determination of a fair and reasonable rate, the value of the property necessarily used in rendering service is the rate base. Public Utils. Comm'n v. East Providence Water Co., 48 R.I. 376 , 136 A. 447, 1927 R.I. LEXIS 142 (1927).

Hydrants furnished by town to water company could not be included in inventory of water company in determining value of property used. Public Utils. Comm'n v. East Providence Water Co., 48 R.I. 376 , 136 A. 447, 1927 R.I. LEXIS 142 (1927).

Price paid for property of water company is not conclusive in determining original cost for rate making purpose but is only one of the facts to consider. Jamestown v. Kennelly, 80 R.I. 177 , 81 R.I. 177 , 100 A.2d 649, 1953 R.I. LEXIS 32 (1953).

Amount needed for payment of dividends on stock of water company was not properly included in rate base. Narragansett v. Kennelly, 83 R.I. 191 , 114 A.2d 393, 1955 R.I. LEXIS 34 (1955).

Book value of old pumping station, land, and a reservoir was not properly included in the rate base where pumping station and reservoir, though held for emergency, were not actually used to produce any water and were not being maintained as a true standby plant. Narragansett v. Kennelly, 83 R.I. 191 , 114 A.2d 393, 1955 R.I. LEXIS 34 (1955).

Supreme court upheld commission’s allocation of sums representing additional tax depreciation between a utility’s interstate and intrastate accounts, whereby the utility’s generation plant was identified as part of its interstate rate base thereby increasing its tax deduction and lowering its intrastate rate base tax liability and hence its cost of serving retail customers, since the reasonableness of the commission’s methodology was in no way undermined by the utility’s argument that the result was inequitable to its interstate supplier. Narragansett Elec. Co. v. Harsch, 117 R.I. 395 , 368 A.2d 1194, 1977 R.I. LEXIS 1707 (1977).

As long as the measurement approach is just and reasonable, the commission is not bound to utilize one formula over another in determining the proper rate base for a company. Providence Gas Co. v. Burman, 119 R.I. 78 , 376 A.2d 687, 1977 R.I. LEXIS 1874 (1977).

The utility company is entitled to introduce evidence before the commission that lobbying fees and charitable contributions benefit the ratepayer and, accordingly, should be treated as operating expense. Providence Gas Co. v. Burman, 119 R.I. 78 , 376 A.2d 687, 1977 R.I. LEXIS 1874 (1977).

Where the utility company had recently purchased property at a price less than its book value, the commission was justified in finding both that this property should be included in the company’s rate base at book value and that the difference between purchase price and book value should be amortized over a 24-year period. Providence Gas Co. v. Burman, 119 R.I. 78 , 376 A.2d 687, 1977 R.I. LEXIS 1874 (1977).

Rate of Return.

The rate of return is the percentage by which the rate base is multiplied to provide a figure that allows a utility to collect revenues sufficient to pay operating costs and attract investment. Providence Gas Co. v. Burman, 119 R.I. 78 , 376 A.2d 687, 1977 R.I. LEXIS 1874 (1977).

Reasonableness of Increase.

Substantial increase in rate is not conclusive on issue of reasonableness of proposed rate. Public Utils. Comm'n v. East Providence Water Co., 48 R.I. 376 , 136 A. 447, 1927 R.I. LEXIS 142 (1927).

Amount of rate should not exceed and in most instances does not exceed the amount reasonably required to meet the need of the public under the circumstances of the case. Public Utils. Comm'n v. East Providence Water Co., 48 R.I. 376 , 136 A. 447, 1927 R.I. LEXIS 142 (1927).

Revised Schedule.

Where administrator, in disapproving proposed increase, found that utility was entitled to increases in a lesser amount and directed the utility to prepare a revised schedule, no further notice was required before approval of the revised schedule for the lesser increase. Charlestown v. Kennelly, 80 R.I. 148 , 93 A.2d 728, 1953 R.I. LEXIS 43 (1953).

Approval of revised schedule of rates by the administrator was not prejudicial even though objectors were not given a chance to examine revised schedule, though that would have been the better procedure, where supreme court found that objections to revised schedule could not be sustained. Charlestown v. Kennelly, 80 R.I. 148 , 93 A.2d 728, 1953 R.I. LEXIS 43 (1953).

In an ongoing rate case, the fact that certain rates proposed in the initial filing by a water company are later replaced by new rates, either at the suggestion of the parties or by the public utilities commission in the exercise of its powers, does not signify the termination of the original filing, and the beginning of a new filing, and thus where the initial filing is still before the commission, the notice and hearing requirements of this section are not triggered when new rates are proposed. Narragansett v. Malachowski, 621 A.2d 190, 1993 R.I. LEXIS 63 (1993).

Special Charter Provisions.

Public utilities commission had power to hear and determine a petition for increased water rates, even though the rates had been established by the water company’s charter. East Providence Water Co. v. Public Utils. Comm'n, 46 R.I. 458 , 128 A. 556, 1925 R.I. LEXIS 30 (1925).

Sufficiency of Findings.

Determination by administrator not supported by adequate findings was insufficient for review, so proceeding was remanded to administrator for a supplemental decision in order that the court might pass on the merits. New Eng. Tel. & Tel. Co. v. Kennelly, 81 R.I. 1 , 98 A.2d 835, 1953 R.I. LEXIS 1 (1953).

Legal evidence relied on by the commission in considering rate changes must be set forth in its decision, and court will remand the case for further findings where such facts, though identified in the record, are not specified in the decision itself. Bristol County Water Co. v. Public Utils. Comm'n, 117 R.I. 89 , 363 A.2d 444, 1976 R.I. LEXIS 1604 (1976).

Denial by the commission of an attrition or erosion allowance must be supported by legal evidence sufficiently specific to facilitate review. Narragansett Elec. Co. v. Harsch, 117 R.I. 395 , 368 A.2d 1194, 1977 R.I. LEXIS 1707 (1977).

A utility may be granted a rate of return sufficient to bring its return in line with those currently achieved in the same region by other enterprises having corresponding risks and uncertainties. Narragansett Elec. Co. v. Harsch, 117 R.I. 395 , 368 A.2d 1194, 1977 R.I. LEXIS 1707 (1977).

The commission improperly refused to permit utility to adopt an accounting procedure whereby tax benefits accruing to it as a result of construction overhead and interest on construction debt would be normalized, where the commission cited as justification for its determination only the state’s current economic condition, thereby depriving the supreme court of findings sufficient to facilitate review. Narragansett Elec. Co. v. Harsch, 117 R.I. 395 , 368 A.2d 1194, 1977 R.I. LEXIS 1707 (1977).

Suspension of Proposed Rate.

The public utilities commission has the power to suspend the effective date of a utility’s proposed rate increase pending its consideration of the application. Providence Gas Co. v. Public Utils. Comm'n, 116 R.I. 80 , 352 A.2d 630, 1976 R.I. LEXIS 1245 (1976).

Collateral References.

Public utility’s right to recover cost of nuclear power plants abandoned before completion. 83 A.L.R.4th 183.

39-3-11.1. Changes in rates of publicly owned water authorities.

  1. Notwithstanding any other provisions of this chapter, the commission shall not have the power to suspend the taking effect of any change or changes in the rates, tolls, and charges filed and published in compliance with the requirements of §§ 39-3-10 and 39-3-11 by any public waterworks or water service owned or furnished by a city, town, or any other municipal corporation defined as a public utility in § 39-1-2 , when the change or changes are proposed to be made solely for the purpose of making payments or compensation to any city or town for reimbursement of any loans or advances of money previously issued to any public waterworks or water service by any city or town under existing contracts or arrangements; provided, however, that the change or changes shall take effect subject to refund or credit pending further investigation, hearing, and order by the commission within eight (8) months after the effective date. The public waterworks or water service shall file with the commission the new rate schedule along with the documentary evidence of the indebtedness supporting the new rates. Further, the rate schedule shall be published in a newspaper of general circulation in the service area by the waterworks or water service at least ten (10) days prior to the effective date thereof.
  2. The provisions of this section shall not be construed to bar recovery of loans or advances of money not otherwise reflected in existing rates, tolls, and charges issued to May 19, 1982.
  3. In setting rates for publicly owned water authorities, the commission shall not require the payment of rental fees for fire hydrants from any municipality that has prohibited such fees by ordinance as provided in § 45-39-4 and has given notice to the commission of the ordinance.

History of Section. P.L. 1982, ch. 428, § 1; P.L. 2011, ch. 189, § 1; P.L. 2011, ch. 278, § 1.

NOTES TO DECISIONS

Notice.

The 30-day notice requirement in general rate cases did not apply to a surcharge tariff filed by a publicly owned water utility. O'Neil v. Malachowski, 604 A.2d 1268, 1992 R.I. LEXIS 71 (1992).

Retroactive Rate.

Regardless of a city water department’s reason for allowing a debt to accumulate for four years without taking curative steps, this section would permit the water department to institute a retroactive rate to repay its loan from the city. In re Woonsocket Water Dep't, 538 A.2d 1011, 1988 R.I. LEXIS 23 (1988).

This section exempts a publicly owned water authority or department from the ban on retroactive ratemaking normally applied in respect to privately owned public utilities. O'Neil v. Malachowski, 604 A.2d 1268, 1992 R.I. LEXIS 71 (1992).

Although a municipal water utility may retroactively remedy revenue deficiencies by instituting a retroactive rate under this section, the public utilities commission is within its authority to investigate the reasonableness and justification of such revenue deficiencies and the propriety of the rate increase. Providence Water Supply Bd. v. Malachowski, 624 A.2d 305, 1993 R.I. LEXIS 124 (1993).

Rhode Island Public Utilities Commission properly denied a rate increase to a water supply board in order to reimburse a city for sums paid for board retirees’ health-care. As the city did not prove that the reimbursement it sought was a repayment of loans made under an existing contract or agreement, R.I. Gen. Laws § 39-3-11.1 ’s exemption to the general rule against retroactive ratemaking did not apply. In re Providence Water Supply Board's Application, 989 A.2d 110, 2010 R.I. LEXIS 29 (2010).

Whenever a municipality-owned water company is petitioning for a retroactive rate increase, as allowed by R.I. Gen. Laws § 39-3-11.1 , it must demonstrate to the Rhode Island Public Utilities Commission that there was an actual loan or advance to support the request; it must also demonstrate that the amount the municipality seeks to recoup is capable of proof by documentary evidence. In re Providence Water Supply Board's Application, 989 A.2d 110, 2010 R.I. LEXIS 29 (2010).

39-3-11.2. [Repealed.]

History of Section. P.L. 1993, ch. 138, art. 37, § 1; P.L. 1994, ch. 70, art. 17, § 1; P.L. 1995, ch. 370, art. 28, § 1; P.L. 1996, ch. 100, art. 38, § 1; P.L. 1997, ch. 30, art. 11, § 1; P.L. 1998, ch. 31, art. 17, § 1; P.L. 1999, ch. 31, art. 16, § 1; P.L. 2000, ch. 55, art. 17, § 1; P.L. 2001, ch. 77, art. 21, § 1; P.L. 2002, ch. 65, art. 39, § 1; P.L. 2003, ch. 376, art. 35, § 1; P.L. 2004, ch. 595, art. 36, § 1; P.L. 2005, ch. 117, art. 18, § 1; P.L. 2006, ch. 246, art. 16, § 1; P.L. 2007, ch. 73, art. 31, § 1; P.L. 2008, ch. 93, § 4; P.L. 2008, ch. 100, art. 13, § 1; P.L. 2008, ch. 122, § 4; P.L. 2009, ch. 68, art. 9, § 1; Repealed by P.L. 2010, ch. 23, art. 10, § 3, effective July 1, 2010.

Compiler’s Notes.

Former § 39-3-11.2 concerned interim rates. For comparable provisions, see § 23-19-13.5 .

39-3-11.3. Providence Water Supply Board transfer.

Notwithstanding any other provisions of law, the Providence Water Supply Board shall transfer to the general fund of the city of Providence an amount equal to five percent (5%) per annum times the annual gross revenues of the Providence Water Supply Board for the fiscal year ending June 30, 2004, and for the next two (2) succeeding fiscal years. This transfer shall not be included as part of the Providence Water Supply Board’s rates approved by a final unappealable order of the public utilities commission for the same three (3) fiscal years.

History of Section. P.L. 2003, ch. 376, art. 7, § 12.

39-3-12. Burden of proof to sustain increased rates — Modification of requirements.

At any hearing involving any proposed increase in any rate, toll, or charge, the burden of proof to show that the increase is necessary in order to obtain a reasonable compensation for the service rendered shall be upon the public utility; provided, that the commission may, in its discretion and for good cause shown, allow changes within less time than required by the notice specified in § 39-3-11 , and without holding the hearing and investigation therein provided for, or modify the requirements of § 39-3-11 with respect to filing and publishing tariffs, either in the particular instance or by general order applicable to special or particular circumstances or conditions, or may enter an interim order prescribing a temporary schedule of rates, tolls, and charges pending the completion of its investigation.

History of Section. P.L. 1912, ch. 795, § 48; P.L. 1918, ch. 1651, § 1; G.L. 1923, ch. 253, § 48; G.L. 1938, ch. 122, § 45; P.L. 1949, ch. 2172, § 1; G.L. 1956, § 39-3-12 ; P.L. 1973, ch. 199, § 3.

Law Reviews.

2000 Survey of Rhode Island Law, see 6 Roger Williams U. L. Rev. 593 (2001).

NOTES TO DECISIONS

Burden of Proof on Appeal.

Where the administrator (now commission) has rejected company’s filing and fixed new rates based on substantial evidence, appellant has the burden of proof upon appeal to show that administrator’s (now commission’s) order should be set aside. Jamestown v. Kennelly, 80 R.I. 177 , 81 R.I. 177 , 100 A.2d 649, 1953 R.I. LEXIS 32 (1953).

Where on the record the utility utterly fails to sustain the burden of proof of any effort to resolve the issues raised at the public hearing, the denial by the public utilities commission of a rate increase proposal should be upheld. Providence Gas Co. v. Public Utils. Comm'n, 116 R.I. 80 , 352 A.2d 630, 1976 R.I. LEXIS 1245 (1976).

Deferred Rate-Case Expense.

The precedent that required all utilities to demonstrate “unusual circumstances” in order to place unamortized and deferred-rate-case expenses in the rate base was reasonable, lawful, predictable and consistent. In proceedings before the Public Utilities Commission, a utility had an affirmative burden of production and proof on the reasonableness and necessity of the elements which made up its request for a rate increase. Providence Gas Co. v. Malachowski, 656 A.2d 949, 1995 R.I. LEXIS 93 (1995).

Depreciation Expense.

A utility has the statutory burden of proof with respect to the component elements of its request for a rate increase, including depreciation expense. Valley Gas Co. v. Burke, 122 R.I. 374 , 406 A.2d 366, 1979 R.I. LEXIS 1550 (1979).

Information Required of Utility.

It is entirely within the province and expertise of the public utilities commission to determine nature and type of factual information that must be supplied in the first instance by a utility, unless shown to be impossible or unduly burdensome, in order to obtain approval of tariff-increase request. New Eng. Tel. & Tel. Co. v. Public Utils. Comm'n, 446 A.2d 1376, 1982 R.I. LEXIS 891 (1982).

The public utilities commission is fully empowered to prescribe as a threshold requirement the precise cost information that a utility must submit with its rate-increase filings in order to meet its statutory burden to prove that requested overall revenue is necessary and proposed rate design nondiscriminatory. New Eng. Tel. & Tel. Co. v. Public Utils. Comm'n, 446 A.2d 1376, 1982 R.I. LEXIS 891 (1982).

No affirmative duty is imposed upon the public utilities commission to promulgate alternative rate schedules when the utility has not demonstrated that its new rate schedule is reasonable and not unjustly discriminatory. New Eng. Tel. & Tel. Co. v. Public Utils. Comm'n, 446 A.2d 1376, 1982 R.I. LEXIS 891 (1982).

Rhode Island Public Utilities Commission (PUC) properly denied a rate increase to a water supply board in order to reimburse a city for the sums it paid for board retirees’ health-care. The PUC was not required to accept the board’s extrapolation of the costs of the health care paid by the city in place of the actual, verifiable proof necessary to sustain a general rate filing. In re Providence Water Supply Board's Application, 989 A.2d 110, 2010 R.I. LEXIS 29 (2010).

Labor Costs.

The commission did not err in disallowing capitalized training-labor costs, considering them to constitute double recovery, where the commission’s decision was supported by the facts of the case, by the opinion of an expert witness, and by the failure of the utility to object to or present any contrary testimony. Providence Gas Co. v. Malachowski, 600 A.2d 711, 1991 R.I. LEXIS 184 (1991).

Overall Increases.

A utility seeking an increase in rates must establish not only that it requires an overall increase but that its proposed schedule of rates is nondiscriminatory. United States v. Public Utils. Comm'n, 120 R.I. 959 , 393 A.2d 1092, 1978 R.I. LEXIS 744 (1978).

To satisfy burden of proof that increase sought is necessary to achieve reasonable compensation for services rendered, a utility must prove that overall revenue increase requested is necessary and that schedule of rates proposed is nondiscriminatory. New Eng. Tel. & Tel. Co. v. Public Utils. Comm'n, 446 A.2d 1376, 1982 R.I. LEXIS 891 (1982).

Presumption of Reasonableness and Nondiscrimination.

If utility seeks to spread proposed rate increase proportionately across the board among its several customer classes, it may rely upon presumption that new rates proposed are reasonable and nondiscriminatory since they are superimposed upon existing rates previously approved by the commission. New Eng. Tel. & Tel. Co. v. Public Utils. Comm'n, 446 A.2d 1376, 1982 R.I. LEXIS 891 (1982).

Where proposed rate increase sought increases of 13 percent for residence-exchange service, 14 percent for business-exchange service, 35 to 50 percent for key-telephone service, 34 to 70 percent for semipublic coin-telephone service, 85 percent for private-line service, and 45 percent for auxiliary service, the proposed tariff-rate schedules were not protected by mantle of presumed nondiscrimination. New Eng. Tel. & Tel. Co. v. Public Utils. Comm'n, 446 A.2d 1376, 1982 R.I. LEXIS 891 (1982).

Temporary Increases.

The utility has the duty of filing a schedule covering a proposed change in rate even though the relief sought is temporary. New Eng. Tel. & Tel. Co. v. Kennelly, 75 R.I. 422 , 67 A.2d 705, 1949 R.I. LEXIS 72 (1949).

Though the public utilities administrator (now commission) has, subject to judicial review, broad power to fix rates which public utilities may charge for services, it may not grant temporary rate increases without finding an emergency as justification therefor. Gardiner v. Kennelly, 79 R.I. 367 , 89 A.2d 184, 1952 R.I. LEXIS 57 (1952).

Collateral References.

Public utility’s right to recover cost of nuclear power plants abandoned before completion. 83 A.L.R.4th 183.

39-3-12.1. Information required of water utility.

  1. Notwithstanding any other provisions of this chapter, no water company, supplier, or water utility regulated by the commission shall be allowed to file its rate schedules or notice of changes in rates unless it shall also file a statement containing the following information:
    1. The status of its physical plant, including the volume of its water supply and the source of the supply.
    2. The maintenance policy of the utility, to include the date distribution pipes were last installed, and the length of pipe installed for at least a ten-year (10) duration.
    3. The name and cost of each chemical introduced into the water supply during the most recent six-month (6) period, including the amount used and the purpose for the use.
    4. The policy of the utility toward future expansion and renovation of the physical plant, including the amount of funds expended within the preceding year and expected to be expended within the next year for expansion, renovation, equipment purchase, and/or research and development.
  2. Copies of the statements will be filed with the city and town councils of those cities and towns serviced by the utility.

History of Section. P.L. 1977, ch. 251, § 1.

39-3-12.2. Certain advertising costs prohibited on rate base.

No electric utility, as defined in chapter 1 of this title, may include as part of its rate base any expense for advertising, either direct or indirect, that promotes the construction of a nuclear facility for the generation of electricity, and no utility so regulated may furnish support of any kind, direct or indirect, to any subsidiary, group, association, or individual for advertising and include the expense as part of its rate base. The commission shall promulgate such rules and regulations as are necessary to require public disclosure of all advertising expenses, of whatever kind, either direct or indirect, and to otherwise effectuate the provisions of this section.

History of Section. P.L. 1979, ch. 410, art. 7, § 1.

Cross References.

Adoption of administrative rules and regulations, § 42-35-1 et seq.

39-3-13. Emergency suspension of rate schedules.

The division shall have power, when deemed by it necessary to prevent injury to the business or interest of the people or any public utility of this state in case of any emergency to be judged of by the division, to permit any public utility to temporarily alter, amend, or suspend any existing rates, schedules, and order relating to or affecting any public utility or part of any public utility in this state.

History of Section. P.L. 1912, ch. 795, § 44; G.L. 1923, ch. 253, § 44; G.L. 1938, ch. 122, § 41; G.L. 1956, § 39-3-13 .

NOTES TO DECISIONS

Emergency Required.

The administrator (now commission) is the sole judge as to whether an emergency exists, and a utility is not entitled to relief merely because it considers that an emergency exists. New Eng. Tel. & Tel. Co. v. Kennelly, 75 R.I. 422 , 67 A.2d 705, 1949 R.I. LEXIS 72 (1949).

Though the public utilities administrator (now commission) has, subject to judicial review, broad power to fix rates which public utilities may charge for services, he may not grant temporary rate increases without finding an emergency as justification therefor. Gardiner v. Kennelly, 79 R.I. 367 , 89 A.2d 184, 1952 R.I. LEXIS 57 (1952).

Interest.

The power to make refunds and to set rates as set forth in this chapter includes by implication the power to avoid windfalls to utilities and unjust enrichment by the application of an appropriate quantum of interest by way of compensation for the use of customers’ moneys pending determination of the amount of the refund to be made and the method of disbursement to be used. Bristol & Warren Gas Co. v. Burke, 444 A.2d 858, 1982 R.I. LEXIS 853 (1982).

Jurisdiction.

The jurisdiction vested in the division and the commission by § 39-1-32 and this section is concurrent rather than exclusive. Bristol & Warren Gas Co. v. Burke, 444 A.2d 852, 1982 R.I. LEXIS 842 (1982).

Requirements of Notice.

The public utilities administrator (now commission) may not grant a permanent increase in utility rates on a petition for temporary emergency rate increases as requirements of notice and supporting schedules of rates and charges may differ with the type of relief asked. Gardiner v. Kennelly, 79 R.I. 367 , 89 A.2d 184, 1952 R.I. LEXIS 57 (1952).

Temporary Increases.

This section sanctions a temporary change in rates at the instigation of the utility as a way of dealing with an emergency. Providence Gas Co. v. Burke, 119 R.I. 487 , 380 A.2d 1334, 1977 R.I. LEXIS 2055 (1977).

Collateral References.

Public utility’s right to recover cost of nuclear power plants abandoned before completion. 83 A.L.R.4th 183.

39-3-13.1. Power to order refunds.

The division shall have the power, when deemed by it necessary, to provide remedial relief from unjust, unreasonable, or discriminatory acts, or from any matter, act, or thing done by a public utility, which matter, act, or thing is in chapters 1 — 5 of this title, or otherwise, prohibited or declared to be unlawful, to order the public utility to make restitution to any party or parties, individually or as a class, injured by the prohibited or unlawful acts, by way of a cash refund, billing credit, or rate adjustment, or any other form of relief that the division may devise to do equity to the parties. Any award made in restitution shall carry interest from the date of the injury, at the rate of seven percent (7%) from the date of the order of the division.

History of Section. P.L. 1975, ch. 276, § 1.

NOTES TO DECISIONS

Affiliated Transactions.

Having found that the costs incurred by the utility through its arrangement with its affiliate were unreasonable, the commission acted within its powers under this section in ordering a refund which was not confiscatory nor in violation of the Rhode Island or United States Constitution. Block Island Power Co. v. Public Utils. Comm'n, 505 A.2d 652, 1986 R.I. LEXIS 420 (1986).

Refunds.

When a refund is made pursuant to a Federal Energy Regulatory Commission determination, the utility is entitled to retain that portion of the refund that represents sums which it paid from its own equity resources, together with interest thereon, and must refund to its customers the excess sums collected from them toward payment of its wholesale power supplier. Blackstone Valley Elec. Co. v. Public Utils. Comm'n, 543 A.2d 253, 1988 R.I. LEXIS 88 , cert. denied, 488 U.S. 995, 109 S. Ct. 561, 102 L. Ed. 2d 587, 1988 U.S. LEXIS 5571 (1988).

Retroactive Ratemaking.

It is the rule in Rhode Island that absent legislative guidance to the contrary, a statute will not be given retroactive application if it creates, defines and regulates substantive legal rights, and because this section affects a vested substantive right, it is limited solely to prospective use by the Public Utilities Commission, and cannot be invoked in order for the PUC to remedy an oversight and order retroactive refunds to utility subscribers predicated on a prior misconceived rate-setting decision by the commission. Narragansett Elec. Co. v. Burke, 122 R.I. 13 , 404 A.2d 821, 1979 R.I. LEXIS 2081 (1979), cert. denied, 444 U.S. 1079, 100 S. Ct. 1031, 62 L. Ed. 2d 763, 1980 U.S. LEXIS 756 (1980).

The rule against retroactive ratemaking does not preclude the commission from ordering refunds by a utility which earned well in excess of the rate of return approved by the public utilities commission. Narragansett Elec. Co. v. Burke, 505 A.2d 1147, 1986 R.I. LEXIS 421 (1986).

39-3-14. Accounting and records of utilities.

The division may, from time to time, establish and prescribe a system of forms of accounts to be used by all public utilities, or may classify the public utilities and prescribe a system of forms of accounts for each class thereof. The accounts of all public utilities shall be kept in accordance with the forms prescribed. The division may also, in its discretion, prescribe the forms of records and memoranda to be kept by the public utilities. The forms of accounts and the forms of records and memoranda prescribed and established by the division with respect to common carriers shall conform as nearly as may be to the similar forms from time to time established and prescribed by the Interstate Commerce Commission.

History of Section. P.L. 1912, ch. 795, § 61; P.L. 1918, ch. 1651, § 2; G.L. 1923, ch. 253, § 58; G.L. 1938, ch. 122, § 54; G.L. 1956, § 39-3-14 .

39-3-15. Security issues for which permission required.

A public utility, as defined in § 39-1-2 , may not, without application to and authority from the division, issue stocks, bonds, notes, or other evidences of indebtedness, payable more than twelve (12) months from the date of issue, when necessary for the acquisition of property; the construction, completion, extension, or improvement of its facilities; or for the improvement or maintenance of its service; or for the reorganization or readjustment of its indebtedness and/or capitalization; or for the discharge or lawful refunding of its obligations; or for the reimbursement of money actually expended from income or from any other money in the treasury of the public utility not secured or obtained from the issue of stocks, bonds, notes, or other evidences of indebtedness of the public utility.

History of Section. G.L. 1923, ch. 253, § 62; P.L. 1936, ch. 2345, § 1; G.L. 1938, ch. 122, § 58; G.L. 1956, § 39-3-15 ; P.L. 1997, ch. 142, § 3; P.L. 2017, ch. 18, § 2; P.L. 2017, ch. 31, § 2.

Cross References.

Authorized investment for savings deposits, § 19-9-3 et seq.

Exemption of securities from registration law, § 7-11-401 .

NOTES TO DECISIONS

Application of Section.

Purchase-power contracts, like other routine operating contracts, do not fall within the regulatory scheme of this section. Pascoag Fire Dist. v. Public Utils. Comm'n, 636 A.2d 689, 1994 R.I. LEXIS 19 (1994).

Collateral References.

Bond discount, control over issue of securities to capitalize on fund. 72 A.L.R. 1232.

Regulating issuance of securities by public utilities through public service commission. 41 A.L.R. 889.

Street railway companies, public service commission’s power as to fiscal management of, and issuance of bonds by. 5 A.L.R. 66; 39 A.L.R. 1517.

39-3-16. [Repealed.]

History of Section. G.L. 1923, ch. 253, § 62; P.L. 1936, ch. 2345, § 1; G.L. 1938, ch. 122, § 58; Repealed by P.L. 1996, ch. 316, § 1, effective August 7, 1996.

Compiler’s Notes.

Former § 39-3-16 concerned security issues necessary to comply with municipal contracts.

39-3-17. Procedure for obtaining authority for security issues.

  1. The proceedings for obtaining the consent and authority of the division for the security issue as provided in §§ 39-3-15 39-3-23 shall be as follows:
    1. In case the stocks, bonds, notes, or other evidence of indebtedness are to be issued for money only, the public utility shall file with the division a statement, signed and verified by the president and secretary thereof, setting forth:
      1. The amount and character of the stocks, bonds, or other evidence of indebtedness;
      2. The purposes for which they are to be issued;
      3. The terms upon which they are to be issued;
      4. The total assets and liabilities of the public utility in such detail as the division may require;
      5. If the issue is desired for the purpose of reimbursement of money expended from income, as herein provided, the amount expended, when and for what purposes expended; and
      6. Such other facts and information pertinent to the inquiry as the division may require.
      7. Such other facts and information pertinent to the inquiry as the division may require.
    2. If the stocks, bonds, notes, or other evidence of indebtedness are to be issued, partly, or wholly for property or services or other consideration than money, the public utility shall file with the division a statement, signed and verified by its president and secretary, setting forth: (i) The amount and character of the stocks, bonds, or other evidence of indebtedness proposed to be issued; (ii) The purposes for which they are to be issued; (iii) The description and value of the property or services for which they are to be issued; (iv) The terms on which they are to be issued or exchanged; (v) The amount of money, if any, to be received from the same in addition to the property, service, or other consideration; (vi) The total assets and liabilities of the public utility in such detail as the division may require; and
  2. For the purpose of enabling the division to determine whether it should issue the order, it shall hold such hearings, make such inquiries or investigations, and examine such witnesses, books, papers, documents, and contracts as it may deem proper.

History of Section. G.L. 1923, ch. 253, § 62; P.L. 1936, ch. 2345, § 1; G.L. 1938, ch. 122, § 58; G.L. 1956, § 39-3-17 ; P.L. 1997, ch. 326, § 106; P.L. 2020, ch. 79, art. 1, § 4.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

NOTES TO DECISIONS

Supreme Court Review.

Where approval of transaction was obtained from Rhode Island public utility hearing board for purpose of presenting such approval before the securities and exchange commission in pending case requiring utility holding company to sever its relationship with certain gas properties, and such commission, thereafter, in approving plan for such disposition, included a finding under federal law that compliance with the state law would be detrimental to the carrying out of the plan, compliance with state law was then unnecessary and state Supreme Court would not, therefore, review the previous order of the public utility hearing board. Kelaghan v. Public Util. Hearing Bd., 92 R.I. 82 , 166 A.2d 421, 1960 R.I. LEXIS 142 (1960).

39-3-18. Order of division as to security issue.

The order of the division shall fix the amount, character, and terms of any issue, and the purposes to which the issue or any proceeds thereof shall be applied, and recite that the money, property, consideration, or labor procured or to be procured or paid for by the issue has been, or is reasonably required for the purposes specified in the order, and the value of any property, consideration, or service as the case may be, as found by the division, for which, in whole or in part, the issue is proposed to be made. No public utility shall, without the consent of the division, apply any issue or its proceeds to any purpose not specified in the order.

History of Section. G.L. 1923, ch. 253, § 62; P.L. 1936, ch. 2345, § 1; G.L. 1938, ch. 122, § 58; G.L. 1956, § 39-3-18 .

39-3-19. Unauthorized securities.

All stocks, bonds, notes, or other evidence of indebtedness, payable at periods of more than twelve (12) months after the date of issue thereof, issued by any public utility after April 30, 1936, without the consent or permission of the division, as provided in this chapter, shall be void and of no effect.

History of Section. G.L. 1923, ch. 253, § 62; P.L. 1936, ch. 2345, § 1; G.L. 1938, ch. 122, § 58; G.L. 1956, § 39-3-19 ; P.L. 1997, ch. 326, § 106.

39-3-20. Securities of foreign utilities.

No foreign public utility corporation shall be required to apply to the division for authority to issue stocks, bonds, notes, or other evidence of indebtedness.

History of Section. G.L. 1923, ch. 253, § 62; P.L. 1936, ch. 2345, § 1; G.L. 1938, ch. 122, § 58; G.L. 1956, § 39-3-20 .

39-3-21. Penalty for false statements.

Any director, president, secretary, manager, officer, or other official of any public utility who shall knowingly make any false statement to secure the issue of any stock, bond, note, or other evidence of indebtedness, or who shall, by such false statement, procure the order of the division for the issue of any stock, bond, note, or other evidence of indebtedness, or issue with knowledge of fraud, negotiate, or cause to be negotiated, any stock, bond, or other evidence of indebtedness in violation of §§ 39-3-15 39-3-23 shall, upon conviction thereof, be fined not less than five hundred dollars ($500), or be imprisoned in the adult correctional institutions for not less than one year nor more than ten (10) years.

History of Section. G.L. 1923, ch. 253, § 62; P.L. 1936, ch. 2345, § 1; G.L. 1938, ch. 122, § 58; impl. am. P.L. 1956, ch. 3721, § 1; G.L. 1956, § 39-3-21 .

39-3-22. Security dividends — Distribution of proceeds of securities.

No public utility shall declare any stock, bond, or scrip dividend or divide the proceeds of the sale of any stock, bond, or scrip among its stockholders without the consent and permission of the division.

History of Section. G.L. 1923, ch. 253, § 62; P.L. 1936, ch. 2345, § 1; G.L. 1938, ch. 122, § 58; G.L. 1956, § 39-3-22 ; P.L. 1966, ch. 83, § 1.

39-3-23. Charters amended — Availability of information.

The charters of all corporations subject to regulation by the division as public utilities are hereby amended to the extent necessary to comply with the provisions of §§ 39-3-15 39-3-22 as amended; provided, however, that all information acquired under the provisions of the sections shall be available to the governor and to all members of the general assembly.

History of Section. G.L. 1923, ch. 253, § 62; P.L. 1936, ch. 2345, § 1; G.L. 1938, ch. 122, § 58; G.L. 1956, § 39-3-23 ; P.L. 1966, ch. 83, § 2.

39-3-24. Transactions between utilities for which approval required.

With the consent and approval of the division, but not otherwise:

  1. Any two (2) or more public utilities doing business in the same municipality or locality within this state, or any two (2) or more public utilities whose lines intersect or parallel each other within this state, or furnish a like service or product within this state, may enter into contracts with each other that will enable the public utilities to operate their lines or plants in connection with each other.
  2. Any public utility may purchase or lease all or any part of the property, assets, plant, and business of any other public utility or merge with any other public utility, and in connection therewith may exercise and enjoy all of the rights, powers, easements, privileges, and franchises theretofore exercised and enjoyed by any other public utility with respect to the property, assets, plant, and business so purchased, leased, or merged.
  3. Any public utility may merge with any other public utility or sell or lease all or any part of its property, assets, plant, and business to any other public utility, provided that the merger or a sale or lease of all or substantially all of its property, assets, plant, and business shall be authorized by a vote of at least two-thirds (2/3) in interest of its stockholders at a meeting duly called for the purpose. Any stockholder who shall not have voted in favor of the merger, sale, or lease, either in person or by proxy, shall be entitled to the rights, and the corporation shall be subject to the duties, obligations, and liabilities set forth in §§ 7-1.2-1201 and 7-1.2-1202 with respect to dissenting stockholders and to corporations that sell, lease, or exchange their entire assets respectively.
  4. Any public utility may directly or indirectly purchase the stock of any other public utility.

History of Section. G.L. 1923, ch. 253, § 63; P.L. 1936, ch. 2345, § 1; G.L. 1938, ch. 122, § 59; G.L. 1956, § 39-3-24 ; P.L. 1985, ch. 376, § 1; P.L. 1997, ch. 142, § 3; P.L. 1999, ch. 247, § 1; P.L. 2005, ch. 36, § 24; P.L. 2005, ch. 72, § 24; P.L. 2017, ch. 18, § 2; P.L. 2017, ch. 31, § 2.

Cross References.

Wholesale water contracts, exemption from provisions, § 39-3-38 .

NOTES TO DECISIONS

Federal Regulation.

Where approval of transaction was obtained from Rhode Island public utility hearing board for purpose of presenting such approval before the securities and exchange commission in pending case requiring utility holding company to sever its relationship with certain gas properties, and such commission, thereafter, in approving plan for such disposition, included a finding under federal law that compliance with the state law would be detrimental to the carrying out of the plan, compliance with state law was then unnecessary and state Supreme Court would not, therefore, review the previous order of the public utility hearing board. Kelaghan v. Public Util. Hearing Bd., 92 R.I. 82 , 166 A.2d 421, 1960 R.I. LEXIS 142 (1960).

Stock Purchases.

Subsection (d) does not apply to the situation where a public utility purchases stock in a holding company that owns the stock of another public utility. Valley Resources v. South County Gas Co., 486 A.2d 1076, 1985 R.I. LEXIS 429 (1985) (decided prior to 1985 amendment of subsection (d)).

39-3-25. Proceedings for approval of transactions between utilities.

The proceedings for obtaining the consent and approval of the division for such authority shall be as follows: There shall be filed with the division a petition, joint or otherwise, as the case may be, signed and verified by the president and secretary of the respective companies clearly setting forth the object and purposes desired; stating whether or not it is for the purchase, sale, lease, or making of contracts or for any other purpose in § 39-3-24 provided; and also the terms and conditions of the same. The division shall upon the filing of the petition, if it deem a hearing necessary, fix a time and place for the hearing thereof. If, after the hearing, or, in case no hearing is required, the division is satisfied that the prayer of the petition should be granted; that the facilities for furnishing service to the public will not thereby be diminished; and that the purchase, sale, or lease and the terms thereof are consistent with the public interest, it shall make such order in the premises as it may deem proper and the circumstances may require.

History of Section. G.L. 1923, ch. 253, § 63; P.L. 1936, ch. 2345, § 1; G.L. 1938, ch. 122, § 59; G.L. 1956, § 39-3-25 ; P.L. 1997, ch. 326, § 106.

NOTES TO DECISIONS

Discretion of Division.

It is discretionary with the division of public utilities and carriers as to whether a hearing should be held to consider transactions between utilities requiring its approval. Providence Gas Co. v. Public Utils. Comm'n, 116 R.I. 80 , 352 A.2d 630, 1976 R.I. LEXIS 1245 (1976).

39-3-26. Charters amended to authorize approved transactions.

The charters of all corporations subject to regulation by the division are hereby amended to the extent necessary to authorize the carrying out of any agreement, merger, purchase, sale, or lease approved by the division as provided in §§ 39-3-24 and 39-3-25 .

History of Section. G.L. 1923, ch. 253, § 63; P.L. 1936, ch. 2345, § 1; G.L. 1938, ch. 122, § 59; G.L. 1956, § 39-3-26 ; P.L. 1999, ch. 247, § 1.

39-3-27. Definitions.

  1. “Affiliate” means and includes the following:
    1. Every person owning or holding, directly or indirectly, ten percent (10%) or more of the voting capital stock of a public utility.
    2. Any corporation, voluntary association, or trust, ten percent (10%) or more of the voting capital stock of which is owned or controlled directly or indirectly by a person owning or controlling directly or indirectly ten percent (10%) or more of the voting capital stock of a public utility.
    3. Any person with whom a public utility has a management or service contract or arrangement of the character set forth in § 39-3-28 , including contracts for personal services with persons not otherwise affiliated.
  2. “Person” means and includes individuals, corporations, trustees, lessees, holders of beneficial equitable title, voluntary associations, receivers, and partnerships.

History of Section. G.L. 1923, ch. 253, § 64; P.L. 1936, ch. 2345, § 1; G.L. 1938, ch. 122, § 60; G.L. 1956, § 39-3-27 .

NOTES TO DECISIONS

In General.

When operating expenses arise out of dealings between affiliates, the commission has the right and duty to scrutinize closely such transactions. New Shoreham v. Rhode Island Pub. Utils. Comm'n, 464 A.2d 730, 1983 R.I. LEXIS 1043 (1983).

Executive Compensation.

Ordinarily, the determination of the level of executive compensation is within the discretion of management, and the commission should not interfere with that decision absent evidence tending to prove that the projected expenditures unreasonably and unjustly affect the fare-paying public. However, in a rate proceeding involving affiliated interests, the commission has a duty to scrutinize closely any contract or agreement. New Shoreham v. Rhode Island Pub. Utils. Comm'n, 464 A.2d 730, 1983 R.I. LEXIS 1043 (1983).

39-3-28. Filing of agreements with affiliates.

The original or a verified copy of any contract or arrangement and of any modification thereof or a verified summary of any unwritten contract or arrangement, the consideration of which exceeds five hundred dollars ($500), hereafter entered into between a public utility and an affiliate providing for the furnishing of managerial, supervisory, construction, engineering, accounting, purchasing, financial, or any other services, either to or by a public utility or an affiliate, shall be filed by the public utility with the division within ten (10) days after the date on which the contract is executed or the arrangement entered into. The division may also require a public utility to file in such form as the division may require full information with respect to any purchase from or sale to an affiliate, whether or not made in pursuance of a continuing contract or arrangement.

History of Section. G.L. 1923, ch. 253, § 64; P.L. 1936, ch. 2345, § 1; G.L. 1938, ch. 122, § 60; G.L. 1956, § 39-3-28 ; P.L. 1997, ch. 142, § 3; P.L. 2017, ch. 18, § 2; P.L. 2017, ch. 31, § 2.

NOTES TO DECISIONS

Financing Agreement.

The commission did not act illegally, arbitrarily, or unreasonably in excluding the interest charge from its calculations in determining the cost of refinancing of the utility’s debt. New Shoreham v. Burke, 519 A.2d 1127, 1987 R.I. LEXIS 395 (1987).

Sale of Compressor.

A provision requiring the filing of certain contracts between affiliates did not apply to the sale of a compressor since that was not a transaction involving services. See South County Gas Co. v. Burke, 486 A.2d 606, 1985 R.I. LEXIS 421 (1985).

39-3-29. Effect of failure to file agreements.

Any contract or arrangement not filed with the division pursuant to § 39-3-28 shall be unenforceable in any court in this state, and payments thereunder may be disallowed by the division, unless the later filing thereof is approved in writing by the division.

History of Section. G.L. 1923, ch. 253, § 64; P.L. 1936, ch. 2345, § 1; G.L. 1938, ch. 122, § 60; G.L. 1956, § 39-3-29 .

39-3-30. Investigation and order as to transaction between affiliates.

The division shall have full power and authority to investigate any contract, arrangement, purchase, or sale, and if the division, after notice and hearing, shall find the contract, arrangement, purchase, or sale to be unjust or unreasonable, the division may make such reasonable order relating thereto as the public good requires. In any such investigation, the burden shall be on the public utility or affiliate to prove the reasonableness of any contract, arrangement, purchase, or sale with, from, or to an affiliate. If the public utility shall fail to satisfy the division of the reasonableness of any contract, arrangement, purchase, or sale, the division may disapprove the same, or disallow payments thereunder or the part of any payment as the division shall find to be unjust or unreasonable, or both disapprove and disallow as aforesaid. No payment disallowed by the division shall be capitalized or included as an operating cost of the public utility in the fixing of rates or as an asset in fixing a rate base. If, in any investigation, the public utility or affiliate shall unreasonably refuse to comply with any request of the division for information with respect to relevant accounts and records, whether of the public utility or any affiliate, any portion of which may be applicable to any transaction under investigation, so that parts thereof as the division may deem material may be made part of the record, the refusal shall justify the division in disapproving the transaction under investigation and disallowing payments in pursuance thereof.

History of Section. G.L. 1923, ch. 253, § 64; P.L. 1936, ch. 2345, § 1; G.L. 1938, ch. 122, § 60; G.L. 1956, § 39-3-30 .

NOTES TO DECISIONS

Burden on Utility.

A utility may meet the burden of proof prescribed by this section by establishing that the price of the contract with its affiliate is the federal power commission filed and effective rate. Narragansett Elec. Co. v. Burke, 119 R.I. 559 , 381 A.2d 1358, 1977 R.I. LEXIS 2060 (1977), cert. denied, 435 U.S. 972, 98 S. Ct. 1614, 56 L. Ed. 2d 63, 1978 U.S. LEXIS 1507 (1978).

When the operating expense being investigated by the public utility commission is one incurred through a contract of the utility company with an affiliate, the burden is on the utility to establish the reasonableness of that expense. Narragansett Elec. Co. v. Burke, 119 R.I. 559 , 381 A.2d 1358, 1977 R.I. LEXIS 2060 (1977), cert. denied, 435 U.S. 972, 98 S. Ct. 1614, 56 L. Ed. 2d 63, 1978 U.S. LEXIS 1507 (1978).

Degree of Investigation.

When operating expenses arise out of dealings between affiliates, the commission has the right and duty to scrutinize closely such transactions. New Shoreham v. Rhode Island Pub. Utils. Comm'n, 464 A.2d 730, 1983 R.I. LEXIS 1043 (1983).

It was within the commission’s power under this section to review rates by considering all the sources from which the utility could buy fuel and asking whether the prices charged by its affiliate were reasonable. Block Island Power Co. v. Public Utils. Comm'n, 505 A.2d 652, 1986 R.I. LEXIS 420 (1986).

Federal Law.

Nothing in the federal Public Utility Holding Company Act of 1935 preempts the authority of the Public Utilities Commission to investigate contracts, arrangements, purchases, or sales between affiliated companies and disallow such transactions if found to be unreasonable. Blackstone Valley Elec. Co. v. Public Utils. Comm'n, 486 A.2d 617, 1985 R.I. LEXIS 424 (1985).

Litigation Expenses.

Public utilities commission erred in holding that antitrust-litigation expense is unreasonable per se as a charge to be made to the ordinary and necessary expenses of doing business and utility was entitled to recover litigation expenses allocated to operating company which had been named as defendant and coconspirator in antitrust litigation. New Eng. Tel. & Tel. Co. v. Public Utils. Comm'n, 459 A.2d 1381, 1983 R.I. LEXIS 864 (1983).

Operating Cost.

For the purpose of fixing intrastate rates, the public utility commission must treat an interstate rate filed with the federal power commission as a reasonable operating expense. Narragansett Elec. Co. v. Burke, 119 R.I. 559 , 381 A.2d 1358, 1977 R.I. LEXIS 2060 (1977), cert. denied, 435 U.S. 972, 98 S. Ct. 1614, 56 L. Ed. 2d 63, 1978 U.S. LEXIS 1507 (1978).

Collateral References.

Amount paid by public utility to affiliate for goods or services as includible in utility’s rate base and operating expenses in rate proceedings. 16 A.L.R.4th 454.

39-3-31. Court order to cease practice impairing service.

If, as a result of an investigation in accordance with § 39-3-30 , the division shall find that any public utility is making any payment or about to make any payment or doing or about to do any other thing that substantially threatens or impairs the ability of the public utility to render adequate service, at reasonable rates, or otherwise to discharge its duty to the public, the division may apply to the superior court for an order directing the public utility to cease making any payment or doing any other thing, and thereupon the court shall make such order as the public good may require.

History of Section. G.L. 1923, ch. 253, § 64; P.L. 1936, ch. 2345, § 1; G.L. 1938, ch. 122, § 60; G.L. 1956, § 39-3-31 .

39-3-32. Disallowance of payments to affiliates in rate proceedings.

In any proceeding, whether upon the division’s own motion or upon complaint, involving the rates or practices of any public utility, the division may disallow the inclusion in the accounts of a public utility of any payments or compensation to an affiliate for any services rendered, or property furnished, under existing contracts or arrangements with an affiliate unless the public utility shall establish the reasonableness of the payment or compensation.

History of Section. G.L. 1923, ch. 253, § 64; P.L. 1936, ch. 2345, § 1; G.L. 1938, ch. 122, § 60; G.L. 1956, § 39-3-32 .

NOTES TO DECISIONS

Commission Review.

When operating expenses arise out of dealings between affiliates, the commission has the right and duty to scrutinize closely such transactions. New Shoreham v. Rhode Island Pub. Utils. Comm'n, 464 A.2d 730, 1983 R.I. LEXIS 1043 (1983).

Excessive Expenses.

Where the commission found unreasonable pricing practices between the utility and its affiliate, the excessive expenses could be disallowed under this section. Block Island Power Co. v. Public Utils. Comm'n, 505 A.2d 652, 1986 R.I. LEXIS 420 (1986).

Collateral References.

Amount paid by public utility to affiliate for goods or services as includible in utility’s rate base and operating expenses in rate proceedings. 16 A.L.R.4th 454.

39-3-33. Rules of division.

The division shall make such reasonable rules as will aid in the administration and enforcement of chapters 1 — 5 of this title.

History of Section. G.L. 1923, ch. 253, § 64; P.L. 1936, ch. 2345, § 1; G.L. 1938, ch. 122, § 60; G.L. 1956, § 39-3-33 ; P.L. 1996, ch. 316, § 1.

NOTES TO DECISIONS

Constitutionality.

Regulations promulgated pursuant to state law and concerning two-way radios, immediate reporting of accidents, illumination of headlights and inspections of vehicles transporting liquified natural and petroleum gases are reasonable means of serving legitimate state interests and are not violative of the commerce or equal protection clauses. National Tank Truck Carriers, Inc. v. Burke, 535 F. Supp. 509, 1982 U.S. Dist. LEXIS 17473 (D.R.I. 1982), aff'd, 698 F.2d 559, 1983 U.S. App. LEXIS 30885 (1st Cir. 1983).

Preemption.

Regulations promulgated pursuant to this section and concerning applications and permits for the transportation of liquified natural and petroleum gases, a curfew on the hours of transportation and subsequent written notice of accidents were preempted by the Hazardous Materials Transportation Act, 49 U.S.C. § 1801 et seq. National Tank Truck Carriers, Inc. v. Burke, 535 F. Supp. 509, 1982 U.S. Dist. LEXIS 17473 (D.R.I. 1982), aff'd, 698 F.2d 559, 1983 U.S. App. LEXIS 30885 (1st Cir. 1983).

39-3-34. Utilities to which restrictions apply.

Sections 39-3-15 39-3-33 shall apply only to public utilities as defined in § 39-1-2 .

History of Section. P.L. 1936 (s.s.), ch. 2438, § 2; G.L. 1938, ch. 122, § 61; G.L. 1956, § 39-3-34 .

39-3-35. Municipal rights and franchises subject to regulation.

Every franchise granted to any public utility by any town or city and all contracts, ordinances, rules, regulations, and orders entered into or made by any town or city regulating the use and enjoyment of rights and franchises granted to any public utility or regulating, restricting, or affecting the operation of transit vehicles, under the provisions of any general or special law, shall be subject to the continuing control of the division in the exercise of the powers enumerated in chapters 1 — 5 of this title, and during the existence thereof, every franchise, contract, ordinance, rule, regulation, and order shall be deemed to include, and be subject to, the exercise by the division of any and all of the powers or regulations provided for in chapters 1 — 5 of this title.

History of Section. P.L. 1912, ch. 795, § 51; G.L. 1923, ch. 253, § 51; G.L. 1938, ch. 122, § 48; G.L. 1956, § 39-3-35 ; P.L. 1959, ch. 144, § 2.

Cross References.

Housing authority project, taking of land for, § 45-29-12 .

Municipal franchises, § 39-17-1 et seq.

Redevelopment project, taking of property for, § 45-32-25 .

39-3-36. Notice of railroad hearing.

On any matter pertaining to railroad clearances, or on any matter wherein the safety of railroad train personnel is concerned, the public utilities administrator shall, at least ten (10) days before the date of the hearing on the matter or matters, serve a notice of the time and place of the hearing by mailing a registered letter, postage prepaid, to the Rhode Island state representative of the legislative board of the united transportation union. To effectuate the purpose of this section, it shall be the duty of the united transportation union to notify the division, in writing, of the name and address of the state representative.

History of Section. P.L. 1961, ch. 32, § 1; P.L. 1969, ch. 37, § 1.

39-3-37. Public utilities — Informational mailings.

All public utilities shall include with their mailings to customers any information relating to public utility rates and services as is required from time to time by the commission, which shall promulgate rules and regulations to carry out the intent of this section.

History of Section. P.L. 1974, ch. 245, § 1.

39-3-37.1. Conservation notice on water bills.

Every person or corporation who or that shall charge for the use of water furnished to any house, building, tenement, or estate shall conspicuously display upon the bill or statement for such water charges, the telephone number and address of a public agency designated for the purpose of providing information to the consumer on the conservation of water; provided, further, that once each calendar year, information relating to the conservation of water shall be furnished on the bill to all consumers who are charged for the use of water.

History of Section. P.L. 1990, ch. 416, § 1.

39-3-37.2. Informational notice on electric bills.

Every person or corporation who or that shall charge for the use of electricity furnished to any house, building, tenement, or estate shall conspicuously display upon the bill or statement for such electricity charges, the following information:

  1. The total number of kilowatt hours consumed;
  2. The base rate amount for the hours;
  3. Capacity cost adjustment;
  4. Fuel adjustment charge;
  5. Conservation costs;
  6. All applicable credits;
  7. Applicable streetlight rental costs;
  8. Applicable taxes; and
  9. All other costs, charges, or fees added to the bill or statement.

History of Section. P.L. 1991, ch. 232, § 1.

39-3-37.3. Informational notice on electric bills — Electric distribution company.

  1. Every electric distribution company that shall charge for the distribution of electricity to any house, building, tenement, or estate shall conspicuously display upon the bill or statement for any customer the following information:
    1. The total number of kilowatt hours consumed;
    2. The total cost of distributing the consumer power to the customer;
    3. Transition charges;
    4. Conservation costs;
    5. The total cost of transmitting the consumed power to the appropriate distribution site;
    6. All applicable credits;
    7. Applicable streetlight rental costs;
    8. Applicable taxes;
    9. The cost of power delivered; and
    10. All other costs, charges, or fees added to the bill or statement.
  2. The electric distribution company shall issue a single bill for electric service to all customers in its service territory; provided however, that customers of nonregulated power producers may request that the nonregulated power producers provide separate bills for electricity supply.

History of Section. P.L. 1996, ch. 316, § 1; P.L. 1997, ch. 357, § 4.

39-3-38. Wholesale contracts for the sale of water — Rates or charges.

The authority of any public waterworks or water service owned or furnished by any city, town, water district, fire district, or any other municipal or quasi-municipal corporation to enter into contracts with each other for the sale of water at wholesale is hereby confirmed, and the wholesale contracts shall be exempt from the provisions of § 39-3-24(1) but shall be filed with the division; provided, however, that whenever any public waterworks or water service owned or furnished by any city, town, water district, fire district, or any other municipal or quasi-municipal corporation shall enter into wholesale contracts with each other, the fair wholesale rates or charges for the quantity of water taken shall be for such times and at such rates fixed to continue during such periods as may be mutually agreed upon, or in default of agreement, as shall be determined by the commission in accordance with the provisions of §§ 39-3-10 and 39-3-11 .

History of Section. P.L. 1982, ch. 138, § 1.

39-3-38.1. Rate adjustments — Purchase and sale of water between regulated water-supply boards.

Regulated water-supply boards that purchase wholesale water from another regulated water-supply board may impose a retail rate increase provided the public utilities commission has approved the wholesale rate increase. The total amount of the retail rate so imposed shall not exceed the amount of the wholesale rate increase. The proposed retail rate increase to be applied by the wholesale purchaser shall be submitted no less than thirty (30) days prior to its effective date to the public utilities commission for its review and approval.

History of Section. P.L. 1984, ch. 303, § 1.

39-3-39. Purchase of power from small production facilities by electric utilities.

The public utilities commission shall require that all electric utilities subject to the “Third supplementary decision and order” in that matter entitled “In Re: Arrangements between electric utilities and qualifying cogeneration and small power production facilities” Docket No. 1549 before the public utilities commission purchase additional power from small production facilities at the ceiling price established by each utility pursuant to the decision and order. The electric utilities subject to the decision and order shall purchase power under a standard contract and at the ceiling price from qualifying cogeneration facilities and qualifying small power production facilities, as defined in the Public Utilities Regulatory Policies Act of 1978 (“PURPA”) (16 U.S.C. § 2601 et seq.) with a capacity of ten megawatts (10 MW) or less that are located in the state. The electric utilities to the public utilities third supplementary decision and order issued in Docket No. 1549 shall not be required to enter into agreements at the ceiling price for more than two and one-half percent (21/2%) of its peak load during the prior year.

History of Section. P.L. 1991, ch. 49, § 2.

39-3-40. Storage, transportation, and distribution of gas — Regulation — Penalties.

  1. In regulating the storage, transportation, and distribution of gas, and the pressure under which these operations may respectively be carried on, the division of public utilities and carriers may ascertain, determine, and fix adequate and serviceable standards for the measurement of quality, pressure, or other condition pertaining to the performing of its service, or to the furnishing of its product or commodity, by any gas storage, transportation, and distribution facility, and prescribe reasonable regulations for examination and testing of such service, product, or commodity.
    1. Any person, firm, or corporation who or that violates any provision of any code adopted by the division pertaining to the safety of pipeline facilities and the transportation of gas, or of any regulation or rule thereunder, at a time when the division has submitted to and has in effect the annual certification from the United States Secretary of Transportation provided for in § 5(a) of the Natural Gas Pipeline Safety Act of 1968, as amended (see § 60101 et seq. of Title 49 of the United States Code), shall be subject to civil penalties as specified in 49 U.S.C. § 60122(a), as amended. To provide adequate protection against risks to life and property posed by pipeline transportation and pipeline facilities, the division shall possess the authority to adopt any of the safety standards for pipeline transportation and for pipeline facilities that are contained in 49 U.S.C. § 60101 et seq.
    2. Any such penalty shall be determined by the division. In determining the amount of the penalty, the appropriateness of the penalty to the size of the business of the person, firm, or corporation charged; the gravity of the violation; and the good faith of the person, firm, or corporation charged in attempting to achieve compliance after notification of a violation; shall be considered. The amount of the penalty, where finally determined, may be deducted from any sums that the state may owe to the person, firm, or corporation charged or may be recovered in a civil action commenced in the state courts.

History of Section. P.L. 1992, ch. 62, § 1; P.L. 2012, ch. 99, § 1; P.L. 2012, ch. 105, § 1; P.L. 2015, ch. 54, § 1; P.L. 2015, ch. 55, § 1; P.L. 2016, ch. 511, art. 1, § 17.

Federal Act References.

For state pipeline safety program certifications, see 49 U.S.C. § 60105.

39-3-41. Regulations for pay-per-call services.

  1. The commission may promulgate reasonable regulations concerning the offering of pay-per-call services to customers within the state. The regulations may include advertising standards, conditions under which charges for “pay-per-call services” may be adjusted or waived along with other restrictions or requirements that the commission determines are necessary to protect consumers’ reasonable access to “pay-per-call services.”
  2. For the purposes of this section, “pay-per-call service” means any passive, interactive, polling, conference, or other similar audiotext service that is accessed by telephone, through a 900 area or exchange code or otherwise, and generates a service-related fee billed to a telephone customer via a telephone common carrier or local exchange telephone company in the customer’s normal monthly bill for telephone service.

History of Section. P.L. 1992, ch. 389, § 1.

39-3-42. [Repealed.]

History of Section. P.L. 1992, ch. 133, art. 34, § 1; Repealed by P.L. 1995, ch. 370, art. 40, § 171, effective July 1, 1995.

Compiler’s Notes.

Former § 39-3-42 concerned a restricted receipt account.

39-3-43. [Repealed.]

History of Section. P.L. 2006, ch. 227, § 1; Repealed by P.L. 2006, ch. 227, § 2.

Compiler’s Notes.

Former § 39-3-43 concerned the Kent County Water Authority.

39-3-44. Payment of public utility bills.

All bills issued by a public utility as defined in § 39-1-2 shall be deemed paid upon the receipt of sufficient funds by an agent of the public utility authorized to accept such payment.

History of Section. P.L. 2007, ch. 175, § 1.

Chapter 4 Hearings and Investigations

39-4-1. Investigation of personal injuries and deaths.

Every public utility shall, whenever any accident attended with loss of human life, or serious injury occurs within this state, directly or indirectly arising from or connected with its maintenance or operation, give immediate notice thereof to the division. In the event of any accident, the division, if it deems that the public interest requires it, shall cause an investigation to be made forthwith, which investigation shall be held in the locality of the accident, unless for the greater convenience of those concerned, it shall order the investigation to be held at some other place; and the investigation may be adjourned from place to place as may be found necessary and convenient. The division shall reasonably notify the public utility of the time and place of the investigation. The notice required by this section to be given shall not be admitted as evidence or used for any purpose against the public utility giving notice, in any suit, action, or proceeding brought for damages growing out of any matter mentioned in the notice; nor shall the notice be admitted as evidence or be used for any purpose in any criminal proceeding brought against the public utility giving notice, or against any of its officers, agents, or employees, growing out of any matter mentioned in the notice.

History of Section. P.L. 1912, ch. 795, § 49; G.L. 1923, ch. 253, § 49; G.L. 1938, ch. 122, § 46; G.L. 1956, § 39-4-1 ; P.L. 1997, ch. 326, § 107.

Cross References.

Definitions, § 39-1-2 .

Division of occupational safety, § 28-20-1 et seq.

Functions of department of business regulation, § 42-14-2 .

Comparative Legislation.

Investigation and reports:

Conn. Gen. Stat. § 16-6 et seq.

Mass. Ann. Laws ch. 159, §§ 27-41, 43, 44.

Collateral References.

Liability for injury or death from collision with guy wire. 8 A.L.R.5th 177.

Representation of another before state public utilities or service commission as involving practice of law. 13 A.L.R.3d 812.

Water distributor’s liability for injury due to condition of service lines, meters and the like, which serve individual consumer. 20 A.L.R.3d 1363.

39-4-2. Order to repair or make changes in plant or equipment.

Whenever the commission shall find upon a hearing and an investigation that the plant or equipment of any public utility is inadequate, insufficient, or unsuited to the public needs, or that repairs, improvements, or changes in the plant or equipment ought reasonably to be made, or that an addition to, alteration, or extension of the plant or equipment of any public utility ought reasonably to be made, the commission shall order that the repairs, improvements, changes, additions, alterations, or extensions to the plant or equipment be made within a reasonable time and in the manner specified.

History of Section. P.L. 1912, ch. 795, § 50; G.L. 1923, ch. 253, § 50; G.L. 1938, ch. 122, § 47; G.L. 1956, § 39-4-2 ; P.L. 1969, ch. 240, § 7.

NOTES TO DECISIONS

Bridges.

A bridge is part of a railroad’s “plant or equipment” and the public utilities commission may, after a hearing and finding that the same is “inadequate,” order that repairs be made to such equipment. United E. Ry. v. Cranston, 46 R.I. 425 , 128 A. 213, 1925 R.I. LEXIS 21 (1925).

39-4-3. Investigations on complaint against utility — “Safe and potable” defined.

  1. Upon a written complaint made against any public utility by any city or town council, or by the water supply management division of the department of environmental management, or by any corporation, or by any twenty-five (25) qualified electors, that any of the rates, tolls, charges, or any joint rate or rates of any public utility are in any respect unreasonable or unjustly discriminatory, or that any regulation, measurement, practice, or act whatsoever of any public utility, affecting or relating to the conveyance of persons or property, including sewage, or any service in connection therewith, or the conveyance of any telephone or telegraph message or any service in connection therewith, is in any respect unreasonable, insufficient, or unjustly discriminatory, or that any service is inadequate or cannot be obtained or is unsafe, or the public safety is endangered thereby, or in the case of drinking water that the water is either unsafe or nonpotable, or that the water supplier is in noncompliance with chapter 15.4 et seq. of title 46, the division shall proceed, with or without notice, to make such investigation as it may deem necessary or convenient. But no order affecting the rates, tolls, charges, regulations, measurements, practice, act, or service complained of shall be entered by the division without a formal public hearing. When any complaint shall be made by twenty-five (25) or more qualified electors, the complaint shall designate one of the complainants upon whom shall be served all notices, orders, and citations required by this chapter to be served upon complainants.
  2. The term “safe and potable” shall mean the suitability or fitness for human consumption of drinking water.

History of Section. P.L. 1912, ch. 795, § 18; G.L. 1923, ch. 253, § 18; G.L. 1938, ch. 122, § 15; G.L. 1956, § 39-4-3 ; P.L. 1971, ch. 265, § 7; P.L. 1972, ch. 205, § 6; P.L. 1977, ch. 253, § 1; P.L. 1980, ch. 14, § 3; P.L. 1983, ch. 235, § 4; P.L. 1995, ch. 188, § 4.

Compiler’s Notes.

Chapter 15.4 of title 46, referred to in this section, was repealed by P.L. 1997, ch. 360, § 1, effective July 1, 1997.

Cross References.

Complaints by utilities as to town regulation of franchises, § 39-17-7 .

Public drinking water supply systems, enforcement, § 46-15.3-20 .

NOTES TO DECISIONS

Federal Jurisdiction.

Federal court had jurisdiction of petition to enjoin new rate promulgated by commission for furnishing of electrical energy by state public utility to Massachusetts corporation, where the commission failed to make a finding of reasonableness of new rate, since a judicial question between citizens of different states was involved. Attleboro Steam & Electric Co. v. Narragansett Electric Lighting Co., 295 F. 895, 1924 U.S. Dist. LEXIS 1847 (D.R.I. 1924).

Refusal of Service.

A telegraph company has the right to refuse service which is connected with illegal operations. The company may refuse to render such service not only where such action would subject it to prosecution as a participant in the illegality but also where it would have the effect of promoting illegality. Hill Rd. Publishing & News Co. v. Public Util. Hearing Bd., 96 R.I. 265 , 190 A.2d 729, 1963 R.I. LEXIS 81 (1963).

Service Regulations.

Determination by administrator (now commission) denying petition for order to transportation companies to publish comprehensive route map was sustained where the evidence showed that there was no great demand for such a map by the public and that same would be shortly out of date. Berberian v. Public Util. Hearing Bd., 83 R.I. 28 , 112 A.2d 876, 1955 R.I. LEXIS 10 (1955).

Order of administrator (now commission) denying petition to require bus company to place destination signs in rear and left side of buses was sustained where evidence showed that company had received no complaints and rear and side signs were subject to vandalism where tried. Berberian v. Public Util. Hearing Bd., 83 R.I. 206 , 114 A.2d 677, 1955 R.I. LEXIS 38 (1955).

Bus company was not required to maintain time schedules available for inspection at each bus stop. Berberian v. Public Util. Hearing Bd., 88 R.I. 207 , 145 A.2d 202, 1958 R.I. LEXIS 111 (1958).

39-4-4. Notice of complaint — Time and place of hearing.

The division shall, prior to a formal hearing, notify the public utility complained of that a complaint has been made, and ten (10) days after notice has been given, the division may proceed to set a time and place for a hearing and an investigation as hereinafter provided.

History of Section. P.L. 1912, ch. 795, § 19; G.L. 1923, ch. 253, § 19; G.L. 1938, ch. 122, § 16; G.L. 1956, § 39-4-4 .

39-4-5. Notice of hearing on complaint — Right to appear and summon witnesses.

The division shall give the public utility and the complainant, if any, ten (10) days’ notice of the time and place where and when the hearing and investigation will be held, and the matters considered and determined. Both the public utility and the complainant shall be entitled to be heard and appear by counsel, and shall have process to enforce the attendance of witnesses.

History of Section. P.L. 1912, ch. 795, § 20; G.L. 1923, ch. 253, § 20; G.L. 1938, ch. 122, § 17; G.L. 1956, § 39-4-5 .

Collateral References.

Representation of another before state public utilities or service commission as involving practice of law. 13 A.L.R.3d 812.

39-4-6. Separation of issues — Damage to complainant not required.

The division may, in its discretion, when complaint is made of more than one rate or charge, order separate hearings thereon, and may consider and determine the several matters complained of separately and at such time as it may prescribe. No complaint shall at any time be dismissed because of the absence of direct damage to the complainant.

History of Section. P.L. 1912, ch. 795, § 25; G.L. 1923, ch. 253, § 25; G.L. 1938, ch. 122, § 22; P.L. 1953, ch. 3209, § 1; G.L. 1956, § 39-4-6 .

39-4-7. Hearings in locality of consumers affected.

In any matter within the jurisdiction of the division of public utilities and carriers, involving water rates, charges, or accommodation of the public, or the safety or potability of drinking water, and affecting the inhabitants of any particular community in any town or city, the division, upon request of the town or city council, as the case may be, so affected, shall hold at least one session of the public hearing on the matter within the county where the town or city is located; provided, however, the provisions of this section shall not apply to chapter 12 of this title; and provided, further, however, that the requesting authority shall provide suitable accommodation to be supplied by the town or city council, as the case may be, requesting the hearing.

History of Section. G.L. 1938, ch. 122, § 22; P.L. 1953, ch. 3209, § 1; G.L. 1956, § 39-4-7 ; P.L. 1977, ch. 253, § 1; P.L. 1980, ch. 14, § 3.

39-4-8. Filing of contracts.

Upon any hearing and investigation, the division may require the public utility to file with it a copy of any contract for the purchase of electricity, light, heat, or power, certified by its secretary or treasurer, which shall be open to inspection by the complainant or counsel for the complainant, and the division may consider the reasonableness of the amounts to be paid in accordance with the provisions of the contract for electricity, light, heat, or power insofar as the amounts shall be relevant to the matters subject to discussion at the hearing and investigation.

History of Section. G.L. 1923, ch. 253, § 21; P.L. 1926, ch. 778, § 1; G.L. 1938, ch. 122, § 18; G.L. 1956, § 39-4-8 ; P.L. 1997, ch. 326, § 107.

39-4-9. Orders fixing rates.

If, upon a hearing and investigation had under the provisions of this chapter, the division shall find any existing rates, tolls, charges, or joint rate or rates of any public utility, to be unjust, unreasonable, insufficient, or unjustly discriminatory, or to be preferential or otherwise in violation of any of the provisions of chapters 1 — 5 of this title, the division shall have power to fix and order a substitute therefor the rates, tolls, charges, or joint rates as shall be just and reasonable.

History of Section. P.L. 1912, ch. 795, § 21; G.L. 1923, ch. 253, § 21; P.L. 1926, ch. 778, § 1; G.L. 1938, ch. 122, § 18; G.L. 1956, § 39-4-9 .

NOTES TO DECISIONS

Interstate Commerce.

Petitioner, a Massachusetts corporation, was entitled to enjoin new rate promulgated by Rhode Island commission for furnishing of electrical energy by Rhode Island public utility to petitioner where the commission made no finding that existing rate was “unjust, unreasonable, insufficient or unjustly discriminatory” or that the new rate was “just and reasonable.” Attleboro Steam & Electric Co. v. Narragansett Electric Lighting Co., 295 F. 895, 1924 U.S. Dist. LEXIS 1847 (D.R.I. 1924).

Right of Appeal.

The right of appeal given to a complainant by chapter 5 of this title from orders of the public utilities commission fixing rates and charges is not restricted to a party who instituted a proceeding by written complaint under this chapter. Public Utils. Comm'n v. Providence Gas Co., 42 R.I. 1 , 104 A. 609, 1918 R.I. LEXIS 65 (1918).

Service Charges.

The commission may fix a service charge for gas meters and this does not violate § 11-35-10 , since the latter provision penalizes the wrongful collection of a greater amount than is due on inspection of a meter but does not relate to a uniform rate. Rivelli v. Providence Gas Co., 44 R.I. 76 , 115 A. 461, 1921 R.I. LEXIS 51 (1921).

39-4-10. Orders as to unreasonable practices or inadequate services.

If, upon a hearing and investigation had under the provisions of this chapter, the division of public utilities and carriers shall find that any regulation, measurement, practice, act, or service or any public utility is unjust, unreasonable, insufficient, preferential, unjustly discriminatory, or otherwise in violation of any of the provisions of chapters 1 — 5 of this title, or that any service of the public utility is inadequate, or that any service that can be reasonably demanded cannot be obtained, the division shall have power to substitute therefor other regulations, measurements, practices, service, or acts, and to make the order respecting, and the changes in the regulations, measurements, practices, service, or acts, as shall be just and reasonable, and the power to order refunds as provided for in § 39-3-13.1 .

History of Section. P.L. 1912, ch. 795, § 22; G.L. 1923, ch. 253, § 22; G.L. 1938, ch. 122, § 19; G.L. 1956, § 39-4-10 ; P.L. 1975, ch. 276, § 2.

NOTES TO DECISIONS

Applicability.

Division of Public Utilities and Carriers of the State of Rhode Island acted within its regulatory authority pursuant to R.I. Gen. Laws § 39-4-10 in imposing a 3-year moratorium on a water transport company’s entry into the high-speed water ferry market as the company had undertaken substantial steps toward acquiring high-speed capacity, and the Supreme Court of Rhode Island interpreted R.I. Gen. Laws § 39-4-10 as including planning within the definition of “practice, act or service.” Interstate Navigation Co. v. Div. of Pub. Utils. & Carriers of R.I., 824 A.2d 1282, 2003 R.I. LEXIS 167 (2003).

The plain meaning of R.I. Gen. Laws § 34-4-10 clearly demonstrates that there must be an actual, currently existing practice, act, or service for the Division of Public Utilities and Carriers of the State of Rhode Island to regulate a carrier after an investigation and hearing. Interstate Navigation Co. v. Div. of Pub. Utils. & Carriers of R.I., 824 A.2d 1282, 2003 R.I. LEXIS 167 (2003).

“Practice, Act or Service” Defined.

A substantial step toward completing the ultimate goal is required for engaging in planning to amount to a “practice, act, or service” under R.I. Gen. Laws § 39-4-10 . Interstate Navigation Co. v. Div. of Pub. Utils. & Carriers of R.I., 824 A.2d 1282, 2003 R.I. LEXIS 167 (2003).

39-4-11. Orders as to unsafe or improper conditions.

If, upon a hearing and investigation, the division shall find that the regulations, practices, acts, plant or equipment, appliances, or service of any public utility, or any condition suffered, permitted, or maintained by any public utility is unsafe and nonpotable or improper, or that the public safety is endangered thereby, the division shall by order determine the proper regulations, practices, acts, plant or equipment, appliances, or service thereafter to be in force and to be observed, maintained, and used by the public utility, and may by order require any dangerous, improper, unsafe, and nonpotable condition to be removed or remedied.

History of Section. P.L. 1912, ch. 795, § 23; G.L. 1923, ch. 253, § 23; G.L. 1938, ch. 122, § 20; G.L. 1956, § 39-4-11 ; P.L. 1971, ch. 265, § 8; P.L. 1972, ch. 205, § 6; P.L. 1977, ch. 253, § 1; P.L. 1980, ch. 14, § 3.

39-4-11.1. Order to rebate or cancel charges.

Whenever the division of public utilities and carriers is in receipt of a determination that drinking water is not safe and potable, as determined by certification of the director of health, the division shall thereupon order the public utility to rebate to or credit the accounts of its consumers, the cost of the drinking water distributed during the period, or a portion thereof, as the division, by its rules and regulations, may determine; and, provided further, that the director of health shall certify to the division the date upon which it is determined that drinking water is restored to safety and potability.

History of Section. P.L. 1977, ch. 253, § 2; P.L. 1980, ch. 14, § 3.

39-4-12. Payment of investigation expense by utility.

If, upon a hearing and investigation, it shall be found that any rate, toll, charge, or joint rate or rates is unjust, unreasonable, insufficient, or unjustly discriminatory or preferential or otherwise in violation of any of the provisions of this title, or that any regulation, measurement, practice, act, or service complained of is unjust, unreasonable, insufficient, preferential, or otherwise in violation of any of the provisions of this title, or if it is found that any service is inadequate or that any reasonable service cannot be obtained, the public utility found to be at fault shall, if the commission finds the utility to have knowingly and intentionally violated the provisions, pay the expenses incurred by the division in the investigation and hearing.

History of Section. P.L. 1912, ch. 795, § 24; G.L. 1923, ch. 253, § 24; G.L. 1938, ch. 122, § 21; G.L. 1956, § 39-4-12 ; P.L. 1969, ch. 240, § 7.

Collateral References.

Constitutionality and construction of statute imposing upon public service corporation expense of investigation of its affairs. 101 A.L.R. 197.

39-4-13. Summary investigation by division.

Whenever the division shall believe that any of the rates, tolls, charges, or any joint rate or rates, charged, demanded, exacted, or collected by any public utility are in any respect unreasonable or unjustly discriminatory or otherwise in violation of this title, or that any regulation, measurement, practice, or act whatsoever of the public utility, affecting or relating to the conveyance of persons or property, or any service in connection therewith, or affecting or relating to the production, transmission, delivery, or furnishing of heat, light, water, or power, or any service in connection therewith, or the conveyance of telephone or telegraph messages, or any service in connection therewith, is in any respect unreasonable, insufficient, or unjustly discriminatory; or that any service of the public utility is inadequate or cannot be obtained, or is unsafe, or the public health is endangered thereby; or that an investigation of any matter relating to a public utility should, for any reason be made, it shall summarily investigate the same with or without notice as it shall deem proper. The summary investigation as provided under this section shall be in addition to the hearings conducted pursuant to the provisions of §§ 39-3-7 and 39-3-11 .

History of Section. P.L. 1912, ch. 795, § 26; G.L. 1923, ch. 253, § 26; G.L. 1938, ch. 122, § 23; G.L. 1956, § 39-4-13 ; P.L. 1969, ch. 240, § 7; P.L. 1971, ch. 265, § 9; P.L. 1972, ch. 205, § 6; P.L. 1997, ch. 326, § 107.

39-4-14. Formal investigation — Notice to utility.

If, after making a summary investigation, the division becomes satisfied that sufficient grounds exist to warrant a formal hearing being ordered as to the matters so investigated, it shall furnish to the public utility interested, a statement notifying the public utility of the matters under investigation. Ten (10) days after the notice has been given, the division may proceed to set a time and place for a hearing and investigation.

History of Section. P.L. 1912, ch. 795, § 27; G.L. 1923, ch. 253, § 27; G.L. 1938, ch. 122, § 24; G.L. 1956, § 39-4-14 .

39-4-15. Notice and proceedings on motion of division.

Notice of the time and place for a hearing and investigation shall be given to the public utility and to such other interested persons as the division shall deem necessary, as provided in § 39-4-5 , and thereafter the proceedings shall be had and conducted in reference to the matter investigated in like manner as though a complaint had been filed with the division relative to the matter investigated, and the same order or orders may be made in reference thereto as if the hearing and investigation had been made on a complaint.

History of Section. P.L. 1912, ch. 795, § 28; G.L. 1923, ch. 253, § 28; G.L. 1938, ch. 122, § 25; G.L. 1956, § 39-4-15 .

NOTES TO DECISIONS

Appeal.

Municipal corporations who were permitted by public utilities commission to intervene and act as adversary parties in hearing on reasonableness of rate schedule begun by commission on its own motion had right to appeal from the final order of the commission. Public Utils. Comm'n v. Providence Gas Co., 42 R.I. 1 , 104 A. 609, 1918 R.I. LEXIS 65 (1918).

39-4-16. Service of orders — Effective date.

The division shall cause a certified copy of all its orders to be served upon an officer or agent of the public utility affected thereby, and upon the complainant if any there be, and all orders shall of their own force take effect and become operative ten (10) days after service thereof unless a different time be fixed by the order.

History of Section. P.L. 1912, ch. 795, § 29; G.L. 1923, ch. 253, § 29; G.L. 1938, ch. 122, § 26; G.L. 1956, § 39-4-16 .

39-4-17. Rescission or alteration of orders.

The public utilities administrator may, at any time, upon notice to the public utility and after opportunity to be heard as provided in § 39-4-5 , rescind, alter, or amend any order fixing any rate, toll, charge, joint rate or rates, or any other order made by the public utilities administrator, and certified copies of the order shall be served and take effect as provided in § 39-4-16 for original orders.

History of Section. P.L. 1912, ch. 795, § 33; G.L. 1923, ch. 253, § 33; G.L. 1938, ch. 122, § 30; P.L. 1949, ch. 2174, § 1; G.L. 1956, § 39-4-17 ; P.L. 1997, ch. 326, § 107.

39-4-18. Review of grade crossing ordinances.

All orders, decisions, requests, or ordinances hereafter made by any town or city council under the provisions of §§ 39-8-2 , 39-8-3 , and 39-8-12 , shall be subject to the supervision and control of the division as provided in this section. Upon the written complaint of any public utility, or by ten (10) qualified electors, residents of the town or city, the order of whose town or city council shall be drawn in question, upon the ground that the order, decision, request, or ordinance is unreasonable, the division shall set a hearing as provided in § 39-4-4 , and if the commission shall find that the order, decision, request, or ordinance is unreasonable, the order, decision, request, or ordinance shall be void; provided, that nothing in this chapter shall be construed to take away or limit the existing powers of the town or city councils to abolish grade crossings.

History of Section. P.L. 1912, ch. 795, § 54; G.L. 1923, ch. 253, § 53; G.L. 1938, ch. 122, § 50; impl. am. P.L. 1949, ch. 2174, § 1; G.L. 1956, § 39-4-18 ; P.L. 1969, ch. 240, § 7; P.L. 1997, ch. 326, § 107.

39-4-19, 39-4-20. [Repealed.]

Repealed Sections.

These sections (P.L. 1912, ch. 795, §§ 15, 17; G.L. 1923, ch. 253, §§ 15, 17; G.L. 1938, ch. 122, §§ 12, 14; G.L. 1956, §§ 39-4-19 , 39-4-20), concerning rules as to investigations and subpoena of evidence, were repealed by P.L. 1969, ch. 240, § 18.

39-4-21. Privilege against self-incrimination.

No person shall be excused from testifying or from producing any books, accounts, papers, records, or documents in any investigation or inquiry by, or upon any hearing before, the division or member thereof when ordered to do so by the division or member, upon the ground that the testimony or evidence, accounts, papers, records, books, or documents, required of him or her may tend to incriminate him or her or subject him or her to penalty or forfeiture; but no person shall be prosecuted, punished, or subjected to any penalty or forfeiture for or on account of any act, transaction, matter, or thing concerning which he or she shall, under oath, by order of the division or a member thereof, have testified or produced the documentary evidence; provided, that no person so testifying shall be exempt from prosecution or punishment for any perjury committed by him or her in his or her testimony. Nothing contained in this section is intended to give or shall be construed as in any manner giving any corporation immunity of any kind from the law.

History of Section. P.L. 1912, ch. 795, § 16; G.L. 1923, ch. 253, § 16; G.L. 1938, ch. 122, § 13; G.L. 1956, § 39-4-21 ; P.L. 1997, ch. 326, § 107.

NOTES TO DECISIONS

No Privilege.

R.I. Gen. Laws §§ 39-4-21 and 39-12-34 provide that no person shall be criminally prosecuted for any incriminating statements made before a Division of Public Utilities and Carriers of the State of Rhode Island hearing unless that witness has committed perjury; where there was no evidence that an officer of a water transport company was committing perjury, the officer had no right to invoke the Fifth Amendment privilege against self-incrimination. Interstate Navigation Co. v. Div. of Pub. Utils. & Carriers of R.I., 824 A.2d 1282, 2003 R.I. LEXIS 167 (2003).

Collateral References.

Dismissing action or striking testimony where party to civil action asserts privilege against self-incrimination as to pertinent question. 4 A.L.R.3d 545.

39-4-22. Penalties for violations.

Every public utility or water supplier pursuant to chapter 15.4 of title 46 [repealed], and all officers and agents thereof, shall obey, observe, and comply with every order of the division made under the authority of chapters 1 — 5 of this title as long as the order shall be and remain in force. Every public utility or water supplier that shall violate any of the provisions of the chapters or that fails, omits, or neglects to obey, observe, or comply with any order of the division, shall be subject to a penalty of not less than two hundred dollars ($200) nor more than one thousand dollars ($1,000) for each and every offense. Every violation of the order shall be a separate and distinct offense and, in case of a continuing violation, every day’s continuance thereof shall be, and be deemed to be, a separate and distinct offense. Every officer, agent, or employee of a public utility or water supplier who shall violate any of the provisions of the chapters, or who procures, aids, or abets any violation by any public utility or water supplier, or who shall fail to obey, observe, or comply with any order of the division, or any provision of an order of the division, or who procures, aids, or abets any public utility or water supplier in its failure to obey, observe, or comply with any order or provision, shall be guilty of a misdemeanor and shall be fined not less than one hundred dollars ($100) nor more than five hundred dollars ($500). In construing and enforcing the provisions of this section, the act, omission, or failure of any officer, agent, or other person acting for or employed by any public utility or water supplier, acting within the scope of his or her employment, shall in every case be deemed to be also the act, omission, or failure of the public utility or water supplier.

History of Section. P.L. 1912, ch. 795, § 30; G.L. 1923, ch. 253, § 30; G.L. 1938, ch. 122, § 27; G.L. 1956, § 39-4-22 ; P.L. 1980, ch. 39, § 1; P.L. 1995, ch. 188, § 4.

Compiler’s Notes.

Chapter 15.4 of title 46, referred to in this section, was repealed by P.L. 1997, ch. 360, § 1, effective July 1, 1997.

39-4-23. Action in supreme court to prevent violations.

Whenever the division shall be of the opinion that a public utility, subject to its supervision, is failing or omitting, or about to fail or omit, to do anything required of it by law or by order of the division, or is doing anything, is about to do anything, or is permitting anything, or is about to permit anything to be done contrary to or in violation of law or of any order of the division, it shall direct the attorney general to commence an action or proceeding in the supreme court in the name of the division for the purpose of having the violations or threatened violations prevented. The attorney general shall thereupon begin the action or proceeding by petition to the supreme court, alleging the violation or threatened violation complained of, and praying for appropriate relief. It shall thereupon be the duty of the court to specify a time not exceeding twenty (20) days after the service of the copy of the petition, within which the public utility complained of must answer the petition, and in the meantime the public utility may be restrained. In the case of a default in answering, or after the answer, the court shall immediately inquire into the facts and circumstances of the case. Such corporations or persons as the court may deem necessary or proper to be joined as parties in order to make its judgment, order, or writ effective, may be joined as parties. The final judgment in any action or proceeding, shall either dismiss the action or proceeding or direct that appropriate relief be granted as prayed for in the petition, or in modified or other form.

History of Section. P.L. 1912, ch. 795, § 31; G.L. 1923, ch. 253, § 31; G.L. 1938, ch. 122, § 28; G.L. 1956, § 39-4-23 .

39-4-24. Actions for penalties and forfeitures.

An action to recover a penalty or forfeiture under this chapter shall be brought in any court of competent jurisdiction in this state in the name of the state, and shall be commenced and prosecuted to final judgment by the administrator. All money recovered in any action, together with the costs thereof, shall be paid into the state treasury. Any action may be discontinued or compromised on application of the administrator upon such terms as the court shall approve and order.

History of Section. P.L. 1912, ch. 795, § 32; G.L. 1923, ch. 253, § 32; G.L. 1938, ch. 122, § 29; impl. am. P.L. 1939, ch. 660, § 122; G.L. 1956, § 39-4-24 .

Chapter 5 Appeals

39-5-1. Judicial review.

Any person aggrieved by a decision or order of the commission may, within seven (7) days from the date of the decision or order, petition the supreme court for a writ of certiorari to review the legality and reasonableness of the decision or order. The petition for a writ of certiorari shall fully set forth the specific reasons for which it is claimed that the decision or order is unlawful or unreasonable. Chapter 35 of title 42 shall not be applicable to appeals from the commission. The procedure established by this chapter shall constitute the exclusive remedy for persons and companies aggrieved by any order or judgment of the commission; provided, however, any person aggrieved by a final decision or order of the administrator may appeal therefrom to the superior court pursuant to the provisions of § 42-35-15 .

History of Section. P.L. 1912, ch. 795, § 34; G.L. 1923, ch. 253, § 34; G.L. 1938, ch. 122, § 31; P.L. 1949, ch. 2174, § 1; G.L. 1956, § 39-5-1 ; impl. am. P.L. 1962, ch. 112; P.L. 1969, ch. 240, § 8; P.L. 1973, ch. 199, § 4.

Cross References.

Definitions, § 39-1-2 .

Public drinking water supply systems, enforcement, § 46-15.3-20 .

Law Reviews.

2000 Survey of Rhode Island Law, see 6 Roger Williams U. L. Rev. 593 (2001).

Comparative Legislation.

Review of decisions:

Conn. Gen. Stat. § 16-35.

Mass. Ann. Laws ch. 25, § 5.

NOTES TO DECISIONS

Aggrieved Person.

The right of appeal given to a complainant from order of public utilities commission fixing rates and charges was not restricted to a party who instituted a proceeding by written complaint under § 39-4-3 . Public Utils. Comm'n v. Providence Gas Co., 42 R.I. 1 , 104 A. 609, 1918 R.I. LEXIS 65 (1918) (decided under former law).

An interested party appearing in response to notice, even where such party is not a complainant in a technical sense nor strictly a public utility, becomes a complainant within the meaning of the statute and was vested with the right of appeal. Attleboro Steam & Elec. Co. v. Public Utils. Comm'n, 46 R.I. 496 , 129 A. 495, 1925 R.I. LEXIS 42 (1925), aff'd, 273 U.S. 83, 47 S. Ct. 294, 71 L. Ed. 549, 1927 U.S. LEXIS 684 (1927) (decided under former law).

A telephone subscriber on whom an increase in telephone rates imposes an added financial burden has a direct personal interest in such increase and may prosecute an appeal from the administrative order granting an increase. Gardiner v. Kennelly, 79 R.I. 367 , 89 A.2d 184, 1952 R.I. LEXIS 57 (1952) (decided under former law).

Petitioning company was an aggrieved person and entitled to appeal from an order of the administrator, where first paragraph of order denied and dismissed the tariff filing, even though second paragraph ordered company to file a new schedule of rates to provide for certain increases that were approved. New Eng. Tel. & Tel. Co. v. Kennelly, 80 R.I. 253 , 95 A.2d 886, 1953 R.I. LEXIS 59 (1953) (decided under former law).

Petitioner, Providence Gas Company, had a right to review of denial of its proposal for cost increase of its product by the public utilities commission. Providence Gas Co. v. Public Utils. Comm'n, 116 R.I. 80 , 352 A.2d 630, 1976 R.I. LEXIS 1245 (1976).

Where Public Utilities Commission issued order changing electric rates to be charged certain residential customers, a chamber of commerce in the affected locality was not an “aggrieved person” for purposes of seeking judicial review of the order since the chamber represented only commercial interests whose rates were not affected by the order. Blackstone Valley Chamber of Commerce v. Public Utils. Comm'n, 452 A.2d 931, 1982 R.I. LEXIS 1096 (1982).

Mere fact that chamber of commerce was permitted to intervene in rate proceedings before the Public Utilities Commission did not entitle it to institute an independent suit to set aside the commission’s order unless it could prove that the commission’s order would result in actual or potential legal injury to it. Blackstone Valley Chamber of Commerce v. Public Utils. Comm'n, 452 A.2d 931, 1982 R.I. LEXIS 1096 (1982).

A person is aggrieved by a judgment or order when such judgment or order results in injury in fact, economic or otherwise. Newport Elec. Corp. v. Public Utils. Comm'n, 454 A.2d 1224, 1983 R.I. LEXIS 797 (1983).

One who seeks review of an order or decision in an appellate court must establish affirmatively that he is sufficiently aggrieved in order to acquire standing. Newport Elec. Corp. v. Public Utils. Comm'n, 454 A.2d 1224, 1983 R.I. LEXIS 797 (1983).

A city has standing to seek judicial review of the commission’s declaratory judgment that an electric cogeneration facility is not under the commission’s supervision. The city is able to demonstrate a potential adverse effect on property within the city if the facility’s coal burning is not regulated by the commission. In addition, the case involves substantial public interest, i.e., the interests of the city residents who will be injured by the commission’s denial of the opportunity to justify the city’s ordinance in the administrative arena of the commission. East Providence v. Public Utils. Comm'n., 566 A.2d 1305, 1989 R.I. LEXIS 167 (1989).

Access to Public Records Act, R.I. Gen. Laws § 38-2-1 et seq., provided a remedy only to those people who were denied access to public records; it did not provide a remedy to prevent public agencies from disclosing records; therefore, a gas company trying to prevent a public utilities commission from disclosing information submitted to the commission in a rate case was not an aggrieved party, under R.I. Gen. Laws § 39-5-1 , and a court had no subject matter jurisdiction to review the commission’s decision to release the information. In re New Eng. Gas Co., 842 A.2d 545, 2004 R.I. LEXIS 42 (2004).

Two employers had standing, within the meaning of R.I. Gen. Laws Ann. § 39-5-1 , to prosecute their certiorari petition because the employers were aggrieved by a decision by the Rhode Island Public Utilities Commission to approve an amended power purchase agreement (PPA), regarding an offshore wind project, claiming the PPA would result in millions of dollars in above-market electric distribution costs with resulting negative impacts on their business; the employers were among the largest users of electricity in the state. In re Review of Proposed New Shoreham Project, 19 A.3d 1226, 2011 R.I. LEXIS 50 (2011).

Nonprofit organization was not aggrieved by a decision of the Rhode Island Public Utilities Commission to approve an amended power purchase agreement, regarding an offshore wind project and did not have standing within the meaning of R.I. Gen. Laws Ann. § 39-5-1 because the nonprofit’s interest in the matter was to ameliorate the adverse effect of climate change by creating the foundation necessary to build a strong renewable energy sector in Rhode Island, and such concerns implicated questions of policy more appropriately addressed in the political arena. In re Review of Proposed New Shoreham Project, 19 A.3d 1226, 2011 R.I. LEXIS 50 (2011).

— Municipal Corporations.

Municipal corporations who were permitted by public utilities commission to intervene and act as adversary parties in hearing on reasonableness of rate schedule had right to appeal from final order of the commission. Public Utils. Comm'n v. Providence Gas Co., 42 R.I. 1 , 104 A. 609, 1918 R.I. LEXIS 65 (1918) (decided under former law).

Attorney General.

In the event of a petition for review of a commission decision, brought by a utility that is aggrieved by such decision, the division may in the discretion of its administrator continue to seek the services of the attorney general or may engage independent counsel in the event of a conflict of positions between the division and the attorney general. Providence Gas Co. v. Burke, 419 A.2d 263, 1980 R.I. LEXIS 1797 (1980).

The people and rate payers of the state may most properly be represented by the attorney general in seeking review of the commission’s decision and the attorney general need not be precluded from seeking such review merely because he has previously represented the division as counsel. Providence Gas Co. v. Burke, 419 A.2d 263, 1980 R.I. LEXIS 1797 (1980).

In the event that following a commission decision the attorney general, having previously represented the division, desires to seek review, he should do so in his own name rather than on behalf of the division. Providence Gas Co. v. Burke, 419 A.2d 263, 1980 R.I. LEXIS 1797 (1980).

Cases Pending Before Public Utilities Hearing Board.

An appeal pending before the public utilities hearing board at the time it was abolished should be heard by the superior court. Rhode Island Consumers' Council v. Public Utils. Comm'n, 107 R.I. 284 , 267 A.2d 404, 1970 R.I. LEXIS 771 (1970).

All cases pending in the Division of Public Utilities and Carriers prior to May 16, 1969, are subject to review under § 42-35-15 by appeal to the superior court and all cases filed after that date are reviewable under this section by petition for certiorari to the Supreme Court. Yellow Cab Co. v. Ferri, 108 R.I. 80 , 272 A.2d 326, 1971 R.I. LEXIS 1227 (1971).

Common Law Writ of Certiorari.

When a contractor did not timely seek a writ of certiorari contesting a process order of the Rhode Island Public Utilities Commission, it was not appropriate to treat the contractor’s request as a petition for a common law writ of certiorari because the contractor (1) had an available remedy pursuant to the statutory writ of certiorari provided in R.I. Gen. Laws § 39-5-1 , and (2) showed no unusual hardship or exceptional circumstance warranting granting a petition for a common law writ of certiorari. In re Proceedings to Establish a Contact Voltage Detection, 91 A.3d 774, 2014 R.I. LEXIS 76 (2014).

Division.

Once the commission has made its decision, it is inappropriate for the division and its administrator to challenge that decision, even when the administrator (chairman) has dissented. Providence Gas Co. v. Burke, 419 A.2d 263, 1980 R.I. LEXIS 1797 (1980).

Federal Jurisdiction.

Federal court had jurisdiction of petition to enjoin new rate promulgated by commission for furnishing of electrical energy by state public utility to a Massachusetts corporation, rather than by appeal from order of commission to state supreme court, where the commission failed to make a finding of reasonableness of new rate, since a judicial question between citizens of different states was involved. Attleboro Steam & Electric Co. v. Narragansett Electric Lighting Co., 295 F. 895, 1924 U.S. Dist. LEXIS 1847 (D.R.I. 1924) (decided under former law).

Scope of Review.

Where this section is read with former § 39-5-9 it is clear that the intent of the legislature was to preclude any review by the hearing board of such orders of the administrator as involved rate fixing, whether such fixing was by indirection or direct action. United Transit Co. v. Public Util. Hearing Bd., 96 R.I. 435 , 192 A.2d 423, 1963 R.I. LEXIS 104 (1963) (decided under former law).

It is the intent of the legislature to restrict the supreme court’s authority in reviewing an order of the administrator, to determine the legality and reasonableness of his orders, or whether he has exceeded his authority to fix rates, or acted so arbitrarily as to be unreasonable. United Transit Co. v. Public Util. Hearing Bd., 96 R.I. 435 , 192 A.2d 423, 1963 R.I. LEXIS 104 (1963) (decided under former law).

The legislature intended that all appeals from orders wherein a rate is fixed were to be taken to the supreme court, including any order approving a rate that has been established upon a consideration, inter alia, of service curtailments. United Transit Co. v. Public Util. Hearing Bd., 96 R.I. 435 , 192 A.2d 423, 1963 R.I. LEXIS 104 (1963) (decided under former law).

The reviewing court will not interfere with the rate of return established by the commission unless it is satisfied by clear and convincing evidence that the rate is clearly, palpably and grossly unreasonable. Bristol County Water Co. v. Harsch, 120 R.I. 223 , 386 A.2d 1103, 1978 R.I. LEXIS 658 (1978).

The commission’s findings must be fairly and substantially supported by legal evidence and sufficiently specific to enable the reviewing court to ascertain if the facts upon which they are premised afford a reasonable basis for the result reached. Rhode Island Chamber of Commerce Fed'n v. Burke, 443 A.2d 1236, 1982 R.I. LEXIS 829 (1982).

In reviewing the public utilities commission’s decisions and orders in regulatory proceedings, the supreme court does not engage in fact-finding or weigh conflicting evidence presented to the commission; its inquiry is limited to determination of whether commission’s ruling is lawful and reasonable and whether its findings are fairly and substantially supported by legal evidence. New Eng. Tel. & Tel. Co. v. Public Utils. Comm'n, 446 A.2d 1376, 1982 R.I. LEXIS 891 (1982).

In a public utility rate case review, the court does not sit as a fact finder; its role is to determine whether the commission’s decision and order are lawful and reasonable and whether its findings are fairly and substantially supported by legal evidence and substantially specific to enable the court to ascertain if the facts upon which they are premised afford a reasonable basis for the result reached. However, if the commission fails to set forth sufficiently the findings and the evidentiary basis upon which it rests its decision, the court shall not speculate thereon or search the record for supporting evidence or reasons, nor shall it decide what is proper. Instead, it shall remand the case in order to provide the commission an opportunity to fulfill its obligations in a supplementary or additional decision. New Shoreham v. Rhode Island Pub. Utils. Comm'n, 464 A.2d 730, 1983 R.I. LEXIS 1043 (1983).

The Supreme Court will not engage in fact-finding in reviewing findings of the public utilities commission but will instead determine whether the commission’s findings are lawful and reasonable, fairly and substantially supported by legal evidence, and sufficiently specific to enable the Supreme Court to ascertain if the evidence upon which the commission based its findings reasonably supports the result. Interstate Navigation Co. v. Burke, 465 A.2d 750, 1983 R.I. LEXIS 1077 (1983).

The role of the Supreme Court in reviewing public utilities commission’s decisions is to determine whether the commission’s findings are lawful and reasonable, fairly and substantially supported by legal evidence, and sufficiently specific to enable the court to ascertain if the evidence upon which the commission based its findings reasonably supports the result. Roberts v. New Eng. Tel. & Tel. Co., 487 A.2d 136, 1985 R.I. LEXIS 436 (1985); Valley Gas Co. v. Burke, 518 A.2d 1363, 1986 R.I. LEXIS 569 (1986).

Upon review of a decision and order by the commission, the Supreme Court simply determines whether or not the commission’s ruling was lawful and reasonable and whether its findings are fairly and substantially supported by legal evidence. Roberts v. Narragansett Elec. Co., 490 A.2d 506, 1985 R.I. LEXIS 485 (1985).

Great deference is paid to decisions of the public utilities commission in its ratemaking-regulatory capacity. Blackstone Valley Elec. Co. v. Public Utils. Comm'n, 543 A.2d 253, 1988 R.I. LEXIS 88 , cert. denied, 488 U.S. 995, 109 S. Ct. 561, 102 L. Ed. 2d 587, 1988 U.S. LEXIS 5571 (1988).

County water authority’s (CWA) petition for a writ of certiorari, pursuant to R.I. Gen. Laws § 39-5-1 , for review of a decision by the Rhode Island Public Utilities Commission (PUC), denying a requested rate increase of 35 percent for expenses related to the CWA’s infrastructure replacement program, employee raises, and employee health insurance contributions, was quashed because the PUC had the authority to determine what rates were just and reasonable. In re Kent County Water Auth. Change Rate Schedules, 996 A.2d 123, 2010 R.I. LEXIS 86 (2010).

Because a public utility commission did not make sufficient findings of fact to support its conclusion that a utility complied with an order allowing it to repay a city loan with “net cost savings” or “savings from efficiencies” that were not required for expenses included in a revenue requirement, a water district was entitled to certiorari relief under R.I. Gen. Laws § 39-5-1 . Portsmouth Water & Fire Dist. v. R.I. PUC, 37 A.3d 114, 2012 R.I. LEXIS 3 (2012).

Stay Pending Appeal.

Supreme Court pursuant to statute which allows it to grant a temporary stay of a public utilities commission order, when the utility is before the court on grant of petition for certiorari, is not authorized by the statute to grant retroactive ratesetting and the application for a stay of rate order is the company’s exclusive remedy. New Eng. Tel. & Tel. Co. v. Public Utilities Comm'n, 116 R.I. 356 , 358 A.2d 1, 1976 R.I. LEXIS 1286 (1976).

Time Limitation.

Where the commission issued an order and then reissued that order 10 days later, an appeal filed within seven days of the reissuance was timely. Providence Gas Co. v. Burman, 119 R.I. 78 , 376 A.2d 687, 1977 R.I. LEXIS 1874 (1977).

A petition for certiorari filed within seven days after the Public Utilities Commission issued an order following reconsideration of an earlier order was not barred by this section because the second order was issued in respect to a substantially different proposal. Providence Water Supply Bd. v. PUC, 708 A.2d 537, 1998 R.I. LEXIS 84 (1998).

Although it failed to petition for a writ of certiorari within seven days of a commission order, as required by statute, the petitioner, the United States Navy, was entitled to the issuance of a common-law writ of certiorari because of the commission’s highly inappropriate interference in a contractual relation between the navy and an electric company. United States v. Public Utils. Comm'n, 635 A.2d 1135, 1993 R.I. LEXIS 278 (1993).

The court’s determination of whether a particular case is extraordinary enough to warrant common-law certiorari, when a party has failed to comply with this section, will be considered on an ad-hoc, case-by-case basis. United States v. Public Utils. Comm'n, 635 A.2d 1135, 1993 R.I. LEXIS 278 (1993).

Writ of certiorari issued at the request of a contractor contesting the Rhode Island Public Utilities Commission’s compliance order was quashed because the contractor (1) actually contested a prior process order, and (2) did not contest the process order within the time required by R.I. Gen. Laws § 39-5-1 . In re Proceedings to Establish a Contact Voltage Detection, 91 A.3d 774, 2014 R.I. LEXIS 76 (2014).

39-5-2. Procedure in supreme court.

Upon the filing of a proper petition for a writ of certiorari for review in the office of the clerk of the supreme court, the supreme court shall cause to be issued a writ of certiorari to the commission which shall require the commission within thirty (30) days to certify to the court a transcript of the evidence, a complete record of the hearing, and a copy of the decision or order of the commission. The clerk of the supreme court shall issue citations to all parties in interest, including the public utilities administrator, returnable at such time as in the discretion of the court shall be proper, and the court as soon as may be thereafter shall hear and determine the matter. The transcript of the testimony before the commission in the case, duly certified by the stenographer taking the testimony, and allowed by one of the commissioners, shall be admitted as testimony before the supreme court.

History of Section. P.L. 1969, ch. 240, § 8.

NOTES TO DECISIONS

Counsel.

In the event of a challenge by statutory petition for certiorari of a commission decision, brought by the attorney general as representative of the state or the citizens of the state, the division may retain its own counsel in order to defend the commission’s decision or it may rely upon the adversary party to the proceedings to defend the decision. Providence Gas Co. v. Burke, 419 A.2d 263, 1980 R.I. LEXIS 1797 (1980).

Parties.

This section suggests that the division of public utilities and carriers’ party-like posture, assumed on behalf of the public in public utilities commission hearings, must be carried through to the appellate level. Narragansett Elec. Co. v. Harsch, 117 R.I. 395 , 368 A.2d 1194, 1977 R.I. LEXIS 1707 (1977).

39-5-3. Findings of commission.

The findings of the commission on questions of fact shall be held to be prima facie true and as found by the commission, and the supreme court shall not exercise its independent judgment nor weigh conflicting evidence. An order or judgment of the commission made in the exercise of administrative discretion shall not be reversed unless the commission exceeded its authority or acted illegally, arbitrarily, or unreasonably.

History of Section. P.L. 1969, ch. 240, § 8.

NOTES TO DECISIONS

Burden of Proof.

In setting rates, the commission has a duty to consider attrition or erosion of the utility’s earnings; but where the commission denies relief for erosion, its decision is presumptively reasonable and the utility then must show by clear and convincing evidence that the denial is clearly, palpably and grossly unreasonable. Narragansett Elec. Co. v. Harsch, 117 R.I. 395 , 368 A.2d 1194, 1977 R.I. LEXIS 1707 (1977).

When a utility company proposed an incentive compensation plan for certain of the company’s employees, it was not error for the Public Utilities Commission to disallow half the expense associated with the plan because the company did not show the plan would significantly benefit ratepayers. Narragansett Elec. Co. v. R.I. Pub. Utils. Comm'n, 35 A.3d 925, 2012 R.I. LEXIS 9 (2012).

Evidence.

Action of public utilities commission in issuing certificate of public convenience and necessity to applicant to operate two taxicabs was upheld where applicant presented evidence that existing service was inadequate and/or nonexistent. Yellow Cab Co. v. Freeman, 109 R.I. 164 , 282 A.2d 595, 1971 R.I. LEXIS 1037 (1971).

Where there was competent evidence in the record to support the public utilities commission’s award of certificate of public convenience and necessity to operate taxi service, the commission’s ruling was upheld without weighing conflicting evidence. Yellow Cab Co. v. Freeman, 109 R.I. 164 , 282 A.2d 595, 1971 R.I. LEXIS 1037 (1971).

An allowance in rate base for working capital is not something to which a utility is entitled as a matter of right, and determination of an allowance is a question of fact to be decided by the commission on the basis of the specific facts of the case before it. Michaelson v. New Eng. Tel. & Tel. Co., 121 R.I. 722 , 404 A.2d 799, 1979 R.I. LEXIS 2076 (1979).

It is mandatory for the appellate function that the commission clearly set forth findings and evidentiary facts upon which its decision rests. Valley Gas Co. v. Burke, 446 A.2d 1024, 1982 R.I. LEXIS 898 (1982).

The commission did not err in allowing a company to recover the expenses it incurred in constructing a wind-turbine generator and a cable-television system by means of the company’s retention of the fuel savings it derived from wind-generated electricity. New Shoreham v. Rhode Island Pub. Utils. Comm'n, 464 A.2d 730, 1983 R.I. LEXIS 1043 (1983).

Rhode Island Public Utilities Commission properly denied a rate increase to a water supply board in order to reimburse a city for sums paid for board retirees’ health-care. As the city did not prove that the reimbursement it sought was a repayment of loans made under an existing contract or agreement, R.I. Gen. Laws § 39-3-11.1 ’s exemption to the general rule against retroactive ratemaking did not apply. In re Providence Water Supply Board's Application, 989 A.2d 110, 2010 R.I. LEXIS 29 (2010).

Rhode Island Public Utilities Commission (PUC) properly denied a rate increase to a water supply board in order to reimburse a city for the sums it paid for board retirees’ health-care. The PUC was not required to accept the board’s extrapolation of the costs of the health care paid by the city in place of the actual, verifiable proof necessary to sustain a general rate filing. In re Providence Water Supply Board's Application, 989 A.2d 110, 2010 R.I. LEXIS 29 (2010).

When the Public Utilities Commission (PUC), in evaluating a utility company’s request to modify the company’s capital structure, relied on the capital structure of the company’s twice removed foreign parent, the PUC committed error because (1) there was no evidence of the parent’s services, (2) no expert testified about the propriety of the PUC’s reliance, (3) there was no in-depth analysis of the company’s place in the parent’s structure, and (4) no witness testified about viewing the parent and company as an “integrated entity.” Narragansett Elec. Co. v. R.I. Pub. Utils. Comm'n, 35 A.3d 925, 2012 R.I. LEXIS 9 (2012).

Insufficient evidence supported a decision of the Public Utilities Commission (PUC) determining a proper capital structure of a utility company seeking to modify the company’s capital structure because the PUC’s decision to average the capital structure of the company’s twice removed foreign parent with a structure recommended by an expert had insufficient foundation, especially since the expert’s recommendation had been rejected. Narragansett Elec. Co. v. R.I. Pub. Utils. Comm'n, 35 A.3d 925, 2012 R.I. LEXIS 9 (2012).

Powers of Commission.

When a commission pronounces that a specific rate is a “reasonable and lawful rate for the future,”that pronouncement has the force and effect of a statute. Narragansett Elec. Co. v. Burke, 122 R.I. 13 , 404 A.2d 821, 1979 R.I. LEXIS 2081 (1979), cert. denied, 444 U.S. 1079, 100 S. Ct. 1031, 62 L. Ed. 2d 763, 1980 U.S. LEXIS 756 (1980).

A public utilities commission cannot repeal its own earlier-approved rates by later finding them unreasonable, as application of any other rule would encourage each rate-making hearing to continue indefinitely, encouraging waste of administrative time and resources and discouraging reliance on commission decisions. Narragansett Elec. Co. v. Burke, 122 R.I. 13 , 404 A.2d 821, 1979 R.I. LEXIS 2081 (1979), cert. denied, 444 U.S. 1079, 100 S. Ct. 1031, 62 L. Ed. 2d 763, 1980 U.S. LEXIS 756 (1980).

The commission’s actions in ordering a company to refinance and in restricting the amount and use of a new line of credit did not constitute an unwarranted invasion into the field reserved to management where the company repeatedly failed to comply with the order, leading the commission to question the company’s management credibility. New Shoreham v. Burke, 519 A.2d 1127, 1987 R.I. LEXIS 395 (1987).

The commission did not act illegally, arbitrarily, or unreasonably in excluding the interest charge from its calculations in determining the cost of refinancing of the utility’s debt. Moreover, no financing agreement was ever filed with the commission which supports the conclusion that the commission acted unreasonably in excluding the interest charge. New Shoreham v. Burke, 519 A.2d 1127, 1987 R.I. LEXIS 395 (1987).

R.I. Gen. Laws § 39-1-1 limited the Rhode Island Public Utilities Commission’s (PUC’s) authority to regulating conduct of companies offering intrastate services to the public, and because voice messaging service (VMS) was an intrastate and an interstate service that could not be separated into intrastate and interstate services, the PUC exceeded its authority under § 39-1-1 (c) by ordering a telephone company to provide VMS to its competitors at a discounted rate. Verizon New Eng. Inc. v. R.I. PUC, 822 A.2d 187, 2003 R.I. LEXIS 128 (2003).

Remand.
— Changes Considered.

Where the commission denied a utility’s request for an attrition or erosion allowance on the grounds that any erosion was offset by a recent surge in earnings, the supreme court remanded the case for reconsideration in light of the utility’s growth-in-earnings pattern since the commission issued its report and order. Narragansett Elec. Co. v. Harsch, 117 R.I. 395 , 368 A.2d 1194, 1977 R.I. LEXIS 1707 (1977).

Where the commission denied a utility’s request for an attrition or erosion allowance before the effects of a major work stoppage could be assessed, the supreme court remanded the case for reconsideration in light of more recent information on the strike’s residual effects. Narragansett Elec. Co. v. Harsch, 117 R.I. 395 , 368 A.2d 1194, 1977 R.I. LEXIS 1707 (1977).

— for Supplementary Decision.

Where the commission’s findings did not set out the evidentiary facts upon which it rests its decisions, the record is remanded for the commission to fulfill its obligations and return a supplementary decision. Rhode Island Consumers' Council v. Smith, 111 R.I. 271 , 302 A.2d 757, 1973 R.I. LEXIS 1205 (1973).

Standard of Review.

Where witness testified before public utilities commission on application for certificate of public convenience and necessity to operate taxi service, witness’ credibility was a matter for the commission to decide, not for reviewing court. Yellow Cab Co. v. Freeman, 109 R.I. 164 , 282 A.2d 595, 1971 R.I. LEXIS 1037 (1971).

When a petition for certiorari is granted for review of the award of a certificate of public convenience and necessity to operate a towing service, the scope of review is limited by this section as to whether the evidence presented showed a need for such service. Kilday v. Victoria, 111 R.I. 488 , 304 A.2d 43, 1973 R.I. LEXIS 1233 (1973).

Where telephone company files a request for a rate increase with public utilities commission, court will not engage in fact-finding or speculation. Rhode Island Consumers' Council v. Smith, 111 R.I. 271 , 302 A.2d 757, 1973 R.I. LEXIS 1205 (1973).

On review of public utilities commission ratemaking, the supreme court considers the fairness and reasonableness of the end result rather than the reasonableness of the commission’s methodology; however, the commission must make specific findings, supported by legal evidence. Narragansett Elec. Co. v. Harsch, 117 R.I. 395 , 368 A.2d 1194, 1977 R.I. LEXIS 1707 (1977).

In reviewing a public rate case the role of the supreme court is simply to determine if the commission’s decision was lawful and reasonable and substantially supported by legal evidence. New Eng. Tel. & Tel. Co. v. Public Utilities Comm'n, 118 R.I. 570 , 376 A.2d 1041, 1977 R.I. LEXIS 1499 (1977); Providence Gas Co. v. Burke, 119 R.I. 487 , 380 A.2d 1334, 1977 R.I. LEXIS 2055 (1977); Bristol County Water Co. v. Harsch, 120 R.I. 223 , 386 A.2d 1103, 1978 R.I. LEXIS 658 (1978).

Since the responsibility of weighing the competing interests in the formulation of ratemaking policy is vested in the Public Utilities Commission the court cannot designate a preferred plan. Providence Gas Co. v. Burke, 119 R.I. 487 , 380 A.2d 1334, 1977 R.I. LEXIS 2055 (1977).

While the Supreme Court, in reviewing an order of the commission will not engage in fact finding, it will determine whether the commission’s decision and order are lawful and reasonable and whether its findings are fairly supported by legal evidence and sufficiently specific to enable the court to ascertain if the facts upon which they are premised afford a reasonable basis for the result reached. Blackstone Valley Chamber of Commerce v. Public Utils. Comm'n, 121 R.I. 122 , 396 A.2d 102, 1979 R.I. LEXIS 1750 (1979).

In order to disturb an administrative order, the Supreme Court must be satisfied that the Public Utilities Commission acted illegally, arbitrarily or unreasonably. Narragansett Elec. Co. v. Burke, 122 R.I. 13 , 404 A.2d 821, 1979 R.I. LEXIS 2081 (1979), cert. denied, 444 U.S. 1079, 100 S. Ct. 1031, 62 L. Ed. 2d 763, 1980 U.S. LEXIS 756 (1980).

In determining whether a decision of the Public Utilities Commission is lawful and reasonable, the Supreme Court does not exercise independent judgment or weigh conflicting evidence, and will not disturb administrative findings unless the record establishes that the findings are not fairly and substantially supported by legal evidence. Narragansett Elec. Co. v. Burke, 122 R.I. 13 , 404 A.2d 821, 1979 R.I. LEXIS 2081 (1979), cert. denied, 444 U.S. 1079, 100 S. Ct. 1031, 62 L. Ed. 2d 763, 1980 U.S. LEXIS 756 (1980); Rhode Island Chamber of Commerce Fed'n v. Burke, 443 A.2d 1236, 1982 R.I. LEXIS 829 (1982).

The commission’s findings must be fairly and substantially supported by legal evidence and sufficiently specific to enable the reviewing court to ascertain if the facts upon which they are premised afford a reasonable basis for the result reached. Rhode Island Chamber of Commerce Fed'n v. Burke, 443 A.2d 1236, 1982 R.I. LEXIS 829 (1982).

The commission’s findings of fact, if supported by substantial evidence, are generally unassailable on review. Valley Gas Co. v. Burke, 446 A.2d 1024, 1982 R.I. LEXIS 898 (1982).

The supreme court’s role on appeal from a ratemaking decision is limited to a determination of whether the commission acted illegally, arbitrarily, or unreasonably, the court will not weigh conflicting evidence nor will it substitute its judgment for that of the commission. South County Gas Co. v. Burke, 486 A.2d 606, 1985 R.I. LEXIS 421 (1985).

In reviewing a decision and order of the Public Utilities Commission, the supreme court will consider the fairness and reasonableness of the end result achieved by the commission, not the methodology by which that decision was reached. South County Gas Co. v. Burke, 486 A.2d 606, 1985 R.I. LEXIS 421 (1985).

In examining a decision and order of the commission, the Supreme Court neither weighs conflicting evidence nor engages in independent factfinding. The court accepts the commission’s findings of fact as prima facie true, and refuses to disturb an order promulgated in the exercise of its administrative discretion unless the commission clearly exceeds its statutory authority or acts illegally, arbitrarily, or unreasonably. South County Gas Co. v. Burke, 551 A.2d 22, 1988 R.I. LEXIS 145 (1988).

The factfinding task is expressly reserved for the commission, and the court is not to substitute its judgment for the commission’s. The court determines whether the decision is lawful, reasonable, and well supported by the evidence, while affording great deference to decisions of the commission in its rate-making regulatory capacity. Providence Gas Co. v. Malachowski, 600 A.2d 711, 1991 R.I. LEXIS 184 (1991).

The role of fact-finder is that of the commission alone, and review by the Supreme Court is only to determine whether the commission’s decision is fairly and substantially supported by legal evidence and sufficiently specific to enable the court to ascertain if the facts upon which the commission’s decision is premised afford a reasonable basis for the result reached. Michaelson v. New Eng. Tel. & Tel. Co., 121 R.I. 722 , 404 A.2d 799, 1979 R.I. LEXIS 2076 (1979); Newport Elec. Corp. v. Public Utils. Comm'n, 624 A.2d 1098, 1993 R.I. LEXIS 141 (1993).

Whether the Division of Public Utilities and Carriers was required to approve a power sales agreement before a municipal electric utility corporation could enter such an agreement was a determination of mixed questions of law and fact and accorded the same deference on review as other aspects of factfinding by a trial justice. Pascoag Fire Dist. v. Public Utils. Comm'n, 636 A.2d 689, 1994 R.I. LEXIS 19 (1994).

An order by the public utilities commission allowing intervention was neither unlawful nor unreasonable where the commission expressed concerns about the motives of the intervenors and even though the intervention may have been overly burdensome on the applicant in having to defend against its competitor. In re Island Hi-Speed Ferry, LLC, 746 A.2d 1240, 2000 R.I. LEXIS 47 (2000).

The legislature has expressly limited the authority of the Supreme Court to review an order or decision of the Public Utilities Commission. Energy Council v. PUC, 773 A.2d 853, 2001 R.I. LEXIS 159 (2001).

Rhode Island Supreme Court’s standard of review in Public Utilities Commission matters is strictly prescribed by R.I. Gen. Laws § 39-5-3 , which directs that an order or judgment of the Commission made in the exercise of administrative discretion shall not be reversed unless the Commission exceeded its authority or acted illegally, arbitrarily, or unreasonably. In re New Eng. Gas Co., 842 A.2d 545, 2004 R.I. LEXIS 42 (2004).

Substantial evidence supported a decision by the Rhode Island Public Utilities Commission (PUC) determining that employees of a county water authority (CWA) should pay a portion of their health insurance expenses because most other water utilities in Rhode Island required their employees to contribute toward their health insurance and nothing in R.I. Gen. Laws § 39-16-5 divested the PUC of its statutory authority to determine what rates were just and reasonable; the PUC had denied the CWA’s application for a rate increase of 35 percent. In re Kent County Water Auth. Change Rate Schedules, 996 A.2d 123, 2010 R.I. LEXIS 86 (2010).

Substantial evidence supported a decision by the Public Utility Commission (PUC) to deny a county water authority’s (CWA) requested rate increase for employee raises because the CWA failed to overcome the presumption that the PUC’s conclusions were reasonable; the CWA requested a four percent raise and the PUC granted a two percent increase. In re Kent County Water Auth. Change Rate Schedules, 996 A.2d 123, 2010 R.I. LEXIS 86 (2010).

When the Public Utilities Commission (PUC), in evaluating a utility company’s request to modify the company’s capital structure, declined to use a structure the company was implementing at the time of the PUC’s decision, the PUC’s decision was not disturbed on judicial review because the decision was entitled to great deference. Narragansett Elec. Co. v. R.I. Pub. Utils. Comm'n, 35 A.3d 925, 2012 R.I. LEXIS 9 (2012).

When the Public Utilities Commission (PUC), in evaluating a utility company’s request to modify the company’s capital structure, declined to use a proxy group of like utilities to determine a proper capital structure, the PUC’s ruling was not disturbed on judicial review because (1) the ruling involved the PUC’s complex socioeconomic and technical knowledge, requiring deferential review, and (2) the company did not produce clear and convincing evidence rebutting the presumption that the ruling was reasonable. Narragansett Elec. Co. v. R.I. Pub. Utils. Comm'n, 35 A.3d 925, 2012 R.I. LEXIS 9 (2012).

Public Utilities Commission order fully comported with a regulated electric and gas distribution company’s settlement proposal, and the company was not required to continue to escrow the interconnection tax funds being paid to it by the solar energy system operators or to refund what it held in escrow; the explicit language of the proposal very definitely did not state that the funds would be held in escrow until the IRS clarified the state of the law. ACP Land, LLC v. R.I. PUC, 228 A.3d 328, 2020 R.I. LEXIS 38 (2020).

There was no error on the part of the Public Utilities Commission in determining that a regulated electric and gas distribution company’s conclusion was reasonable because due to the uncertainty in the law, it was eminently reasonable of the company to come to the decision that it had to continue to pay an interconnection tax to the IRS and pass that tax on to solar energy system operators. ACP Land, LLC v. R.I. PUC, 228 A.3d 328, 2020 R.I. LEXIS 38 (2020).

39-5-4. Powers of supreme court.

The supreme court may reverse or affirm the judgments and orders of the commission and may remand a cause to it with such mandates as law or equity shall require; and the commission shall enter judgment or order in accordance with the mandates. The transfer of the cause to the supreme court shall not vacate or operate as a stay of any judgment or order of the commission, but the supreme court, or when not in session, a justice thereof, upon notice to interested parties, may suspend execution of the same with or without terms or conditions as justice and equity require; provided, however, that the execution of rate orders shall not be suspended at the request of a utility company unless the company files with the commission a bond running to the commission in an amount and with sureties approved by the court or a justice thereof conditioned that, within thirty (30) days after the termination of the proceedings, the company shall repay to the persons from whom collected, from and after the effective date of the commission’s final order, all sums in excess of the rates finally determined to be just and reasonable.

History of Section. P.L. 1912, ch. 795, § 35; G.L. 1923, ch. 253, § 35; G.L. 1938, ch. 122, § 32; G.L. 1938, ch. 122, § 31; P.L. 1949, ch. 2174, § 1; G.L. 1956, § 39-5-4 ; P.L. 1969, ch. 240, § 8.

NOTES TO DECISIONS

Conditions to Suspension.

Appeal from order fixing rates operated as a stay of the order appealed from unless company filed a stipulation that the account of each subscriber would be kept so that amounts collected by way of increase in tariff could be refunded to the extent that same exceeded a fair and reasonable rate as determined on the merits of the appeal. New Eng. Tel. & Tel. Co. v. Kennelly, 80 R.I. 164 , 94 A.2d 253, 1953 R.I. LEXIS 45 (1953); New Eng. Tel. & Tel. Co. v. Kennelly, 80 R.I. 253 , 95 A.2d 886, 1953 R.I. LEXIS 59 (1953) (decided prior to 1969 amendment).

Criteria for Ordering Stay.

In determining whether to stay order of public utilities commission, supreme court is guided by criteria which guide federal appellate judiciary in considering stays under Fed. Rules App. Proc., Rule 8, 28 U.S.C. Narragansett Elec. Co. v. Harsch, 117 R.I. 940 , 367 A.2d 195, 1976 R.I. LEXIS 1793 (1976), limited, Department of Corrections v. Rhode Island State Labor Relations Bd., 658 A.2d 509, 1995 R.I. LEXIS 143 (1995).

Emergency Suspension.

Appeals by municipalities from order of public utilities commission granting rate increase would not operate as a stay of such order where an emergency existed in the financial affairs of the appellee and the objections of unjust and discriminatory rates by appellants could be determined only after a hearing on the merits of the appeals. Public Utils. Comm'n v. Rhode Island Co., 42 R.I. 394 , 108 A. 66 (1919) (decided prior to 1969 amendment).

Reasons for Suspension of Stay.

An appellee, in applying for a suspension of the ordinary effect of an appeal under this section, should set out on which of the reasons enumerated it bases its prayer for relief, and then it becomes the duty of the supreme court to set a speedy hearing with notice to appellant, but where the public safety or irreparable injury may require immediate action, a temporary order of suspension could be made until notice and hearing of the parties. Public Utils. Comm'n v. Rhode Island Co., 42 R.I. 379 , 107 A. 871 (1919) (decided prior to 1969 amendment).

Remand.

Where commission considered unfavorably utility’s record of service, but record indicated that company had initiated improvements, the Supreme Court exercised its powers pursuant to this section and remanded the case for reconsideration in light of any improvements completed and placed in operation. Bristol County Water Co. v. Public Utils. Comm'n, 117 R.I. 89 , 363 A.2d 444, 1976 R.I. LEXIS 1604 (1976).

Where an erosion allowance (adjustment for effect of future inflation on rate of return) has been determined to be erroneous and must be corrected on remand from supreme court, the commission should compare the original erosion allowance to the actual subsequent experience of the company and correct the allowance accordingly; however, the remainder of the commission’s decision on remand should relate back to the figures used in the original hearing. New Eng. Tel. & Tel. Co. v. Public Utilities Comm'n, 118 R.I. 570 , 376 A.2d 1041, 1977 R.I. LEXIS 1499 (1977).

Remedies Pending Appeal.

Supreme Court pursuant to statute which allows it to grant a temporary stay of a public utilities commission order, when the utility is before the court on grant of petition for certiorari, is not authorized by the statute to grant retroactive ratesetting and the application for a stay of rate order is the company’s exclusive remedy. New Eng. Tel. & Tel. Co. v. Public Utilities Comm'n, 116 R.I. 356 , 358 A.2d 1, 1976 R.I. LEXIS 1286 (1976).

Reversal.

Where the court reversed an order of the commission which had stayed the distribution of a credit refund to customers, the court ordered that the company distribute the refund plus an appropriate amount of interest as determined by the court, in order to avoid a windfall for the company which had the use of the refund money while distribution was stayed. Providence Gas Co. v. Burke, 119 R.I. 487 , 380 A.2d 1334, 1977 R.I. LEXIS 2055 (1977).

R.I. Gen. Laws § 39-1-1 limited the Rhode Island Public Utilities Commission’s (PUC’s) authority to regulating conduct of companies offering intrastate services to the public, and because voice messaging service (VMS) was an intrastate and an interstate service that could not be separated into intrastate and interstate services, the PUC exceeded its authority under § 39-1-1 (c) by ordering a telephone company to provide VMS to its competitors at a discounted rate. Verizon New Eng. Inc. v. R.I. PUC, 822 A.2d 187, 2003 R.I. LEXIS 128 (2003).

Standard of Review.

In reviewing the public utilities commission’s decisions and orders in regulatory proceedings, the supreme court does not engage in fact-finding or weigh conflicting evidence presented to the commission; its inquiry is limited to determination of whether commission’s ruling is lawful and reasonable and whether its findings are fairly and substantially supported by legal evidence. New Eng. Tel. & Tel. Co. v. Public Utils. Comm'n, 446 A.2d 1376, 1982 R.I. LEXIS 891 (1982).

An order by the public utilities commission allowing intervention was neither unlawful nor unreasonable where the commission expressed concerns about the motives of the intervenors and even though the intervention may have been overly burdensome on the applicant in having to defend against its competitor. In re Island Hi-Speed Ferry, LLC, 746 A.2d 1240, 2000 R.I. LEXIS 47 (2000).

Suspension by Single Judge.

Former law giving to a single judge, when supreme court was not in session, power to suspend the stay of an order of public utilities commission did not violate requirements of R.I. Const., Amend., Art. XII, Sec. 1 that a majority of judges shall be necessary to constitute a quorum. Public Utils. Comm'n v. Rhode Island Co., 42 R.I. 379 , 107 A. 871 (1919) (decided prior to 1969 amendment).

39-5-5. Discovery of new evidence.

If after appeal has been taken to the supreme court, new evidence shall be discovered by any party, an affidavit setting forth the newly discovered evidence shall be filed in the supreme court, and if that court finds the newly discovered evidence to be of such character and sufficient importance to warrant reconsideration of the matter by the commission, the clerk of the supreme court shall transmit a copy of the affidavit to the commission for further consideration, and the court shall stay further proceedings in the supreme court for such time as it shall deem proper. The commission upon receiving the new evidence may confirm, alter, amend, rescind, or reverse the judgment or order which was appealed, and shall report its action to the court forthwith transmitting therewith a transcript of the new testimony. If the commission rescinds or reverses its prior judgment or order, the appeal shall be dismissed. If the prior order or judgment is confirmed, or if it is altered or amended, the altered or amended judgment or order shall be substituted for the original order or judgment, and the proceedings in the supreme court shall continue accordingly.

History of Section. P.L. 1969, ch. 240, § 8; P.L. 1997, ch. 326, § 108.

NOTES TO DECISIONS

Failure to Comply With Section.

Where the petitioners’ request for remand to the public utilities commission on the basis of new evidence was made after appeal had been taken on the question of closing public railroad crossings, the failure of the petitioners to follow the procedure set out in this section made it impossible to grant their request. East Greenwich Fire Dist. v. Penn Cent. Co., 111 R.I. 303 , 302 A.2d 304, 1973 R.I. LEXIS 1206 (1973).

Chapter 6 Railroad Companies

39-6-1. “Railroad” defined.

The word “railroad,” as used in chapters 6 — 9 of this title, except in § 39-6-15 and in § 39-9-11 , shall be construed so as to include all so-called tramways and all other railroads operated by steam or other power.

History of Section. G.L. 1896, ch. 187, § 7; G.L. 1909, ch. 215, § 10; G.L. 1923, ch. 251, § 1; G.L. 1938, ch. 124, § 1; G.L. 1956, § 39-6-1 .

Cross References.

Functions of department of business regulation, § 42-14-2 .

Rhode Island general corporation law, § 7-1.2-1 et seq.

Comparative Legislation.

Railroad corporations:

Conn. Gen. Stat. § 13b-200 et seq.

Mass. Ann. Laws ch. 159, § 50 et seq.; ch. 160, § 1 et seq.; ch. 161, § 1 et seq.; ch. 162, § 1 et seq.

Collateral References.

Logging or other private railroad as a “railroad” within statutes regulating operation of railroads. 46 A.L.R. 1076.

Stop statute, what is a “railroad” within meaning of. 2 A.L.R. 157.

39-6-2. Unlicensed road as nuisance.

Every railroad or portion of a railroad built in this state for public use, by itself or in connection with any other railroad, without charter or license first had and obtained from the general assembly, is declared to be a public nuisance.

History of Section. G.L. 1896, ch. 187, § 40; G.L. 1909, ch. 215, § 44; G.L. 1923, ch. 251, § 35; G.L. 1938, ch. 124, § 35; G.L. 1956, § 39-6-2 .

39-6-3. Action to abate unlicensed road.

In addition to the remedy by indictment for the nuisance, the attorney general shall, for the purpose of abating any nuisance, file on the part of the state, in the superior court, a civil action or information against any person or corporation who or that shall build any railroad or portion of a railroad, and the court shall take jurisdiction of, hear, determine, decree, and proceed thereon as in cases of private nuisance.

History of Section. G.L. 1896, ch. 187, § 41; C.P.A. 1905, § 1220; G.L. 1909, ch. 215, § 45; G.L. 1923, ch. 251, § 36; G.L. 1938, ch. 124, § 36; G.L. 1956, § 39-6-3 .

39-6-4. Supervision by president and directors.

The president and directors of every railroad corporation shall maintain, by themselves or by an executive committee of the directors, a watchful supervision over the management of their road.

History of Section. G.L. 1896, ch. 187, § 10; G.L. 1909, ch. 215, § 13; G.L. 1923, ch. 251, § 4; G.L. 1938, ch. 124, § 4; G.L. 1956, § 39-6-4 .

39-6-5. Stockholders’ access to books.

Every stockholder of any railroad corporation incorporated within this state may, at all reasonable times, examine the books, papers, and accounts of the corporation in which he or she is a stockholder; and if any clerk or other officer of any railroad corporation having the custody of the books, papers, and accounts of the corporation, shall refuse to permit any stockholder of the corporation to inspect the books, papers, and accounts thereof, the person so offending shall forfeit one hundred dollars ($100).

History of Section. G.L. 1896, ch. 187, § 39; G.L. 1909, ch. 215, § 43; G.L. 1923, ch. 251, § 34; G.L. 1938, ch. 124, § 34; G.L. 1956, § 39-6-5 .

Cross References.

Exemption of securities from registration law, § 7-11-401 .

39-6-6. Security for damages required before entry on land.

No railroad corporation shall enter upon or use the land or materials located for the use of its railroad, except for the purpose of making surveys, until the corporation shall have given such security for the payment of all damages as shall be finally awarded for the land or materials, and for costs, as shall be required by the commissioners appointed to estimate damages; nor shall the corporation enter upon or use the land or materials unless, before the assessment by the commissioners, notice that security will be given on request in writing to the commissioners shall be served on all known persons interested in the land and materials, and residing within this state, by delivering to them or by leaving at their last and usual places of abode a written statement as provided in this section.

History of Section. G.L. 1896, ch. 187, § 54; G.L. 1909, ch. 215, § 58; G.L. 1923, ch. 251, § 49; G.L. 1938, ch. 124, § 49; G.L. 1956, § 39-6-6 ; P.L. 1997, ch. 326, § 109.

Cross References.

Tax exemption of railroad property in South Kingstown and Narragansett, § 44-3-11 .

NOTES TO DECISIONS

Special Law.

Special 1912 law providing for taking of land for purpose of eliminating and altering grade crossings did not violate R.I. Const., art. I, § 16 , in that it omitted provision for giving of security by the railroad corporation before entry upon the land, since this section was sufficient to meet the requirements of the Constitution. In re Pawtucket & Cent. Falls Grade Crossing Comm'n, 36 R.I. 200 , 89 A. 695, 1914 R.I. LEXIS 11 (1914).

Collateral References.

Spur track and the like as constituting a use for which railroad can validly exercise right of eminent domain. 35 A.L.R.2d 1326.

39-6-7. Abandonment of condemned lands.

Any railroad corporation chartered by the general assembly of this state may, at any time before final court confirmation of the report of the commissioners appointed by any court, under the provisions of its charter and of law, to estimate all damages that any person shall sustain whose lands are mentioned or described in any location of the whole or any part of its railroad, abandon the whole or any part of the location, and may report the abandonment to the court; and thereupon all further proceedings by the commissioners with reference to so much of the location as shall have been so abandoned shall forthwith cease, and all costs and expenses incurred in the proceedings up to the date of the abandonment with reference to the abandoned location shall be paid by the railroad company, and the court shall make all necessary orders in the premises.

History of Section. G.L. 1896, ch. 187, § 55; G.L. 1909, ch. 215, § 59; G.L. 1923, ch. 251, § 50; G.L. 1938, ch. 124, § 50; G.L. 1956, § 39-6-7 ; P.L. 1990, ch. 492, § 11.

Cross References.

Condemnation of railroad property for road purposes, § 37-6-13 .

39-6-8. Reversion of abandoned lands.

Any and all lands, materials, and their appurtenances, covered by an abandoned location, that may have been taken or used and not paid for by the railroad company before abandonment, shall immediately, on the report thereof to such court as provided in § 39-6-7 , revert to, and the title thereof become revested in, the several owners thereof, and their respective heirs and assigns, in the same way and with the same effect as if the location had never been made, and the abandonment and reverter may be pleaded by the railroad company in offset and diminution of damages, if any, in any action or proceeding to recover damages for the taking or use.

History of Section. G.L. 1896, ch. 187, § 56; G.L. 1909, ch. 215, § 60; G.L. 1923, ch. 251, § 51; G.L. 1938, ch. 124, § 51; G.L. 1956, § 39-6-8 ; P.L. 1997, ch. 326, § 109.

39-6-9. Possession of land adverse to railroad.

No length of possession, user, or occupancy of land belonging to a railroad corporation by an owner or occupier of adjoining land shall hereafter create any right in or to the land of the corporation in an adjoining owner or occupant or in any person claiming under him or her.

History of Section. P.L. 1899, ch. 657, § 1; G.L. 1909, ch. 215, § 61; G.L. 1923, ch. 251, § 52; G.L. 1938, ch. 124, § 52; G.L. 1956, § 39-6-9 .

Collateral References.

Adverse possession of railroad right-of-way. 50 A.L.R. 303; 95 A.L.R.2d 479.

39-6-10. Adverse possession by railroad.

No length of possession, user, or occupancy by a railroad corporation of land belonging to an adjoining owner shall hereafter create any right in or to adjoining land in the railroad corporation or in any person or corporation claiming under it.

History of Section. P.L. 1899, ch. 657, § 2; G.L. 1909, ch. 215, § 62; G.L. 1923, ch. 251, § 53; G.L. 1938, ch. 124, § 53; G.L. 1956, § 39-6-10 .

Collateral References.

Railroad right-of-way, nature and extent of interest acquired in, by adverse possession or prescription. 127 A.L.R. 517.

39-6-11. Citations in condemnation matters.

Upon the application in writing of any railroad company, or of any person whose interest may be affected by the doings of the company, to the superior court for the county in which the estate affected lies, for a hearing and determination of any matter or thing whereof the superior court has jurisdiction and cognizance relative to railroads by virtue of any act of incorporation, or the provisions of § 39-6-13 , the clerk shall cause a citation to issue thereon, addressed to the parties named in the application, and made returnable to the superior court in the county, which citation shall be served upon the adverse parties in the same manner as process in a civil action, and, upon the return and entry thereof, the matter shall proceed in all respects as a civil action.

History of Section. G.L. 1896, ch. 187, § 60; C.P.A. 1905, § 1131; G.L. 1909, ch. 215, § 66; G.L. 1923, ch. 251, § 57; G.L. 1938, ch. 124, § 57; G.L. 1956, § 39-6-11 .

Collateral References.

Unity or contiguity of separate properties sufficient to allow damages for diminished value of parcel remaining after taking of other parcel. 54 A.L.R.4th 901.

39-6-12. Filing of location of road — Citation.

Whenever any railroad company shall locate its road or any part thereof, it may file the report of the location with the clerk of the superior court for the county in which the located road is situated, and may, in writing, request the action of the court thereon according to charter or general or special act, or the provisions of § 39-6-13 ; and thereupon the clerk shall cause a citation to issue addressed to the parties named in the application, and made returnable to the superior court in the county, which citation shall be served upon the adverse parties in the same manner as process in a civil action, and, upon the return and entry thereof, the matter shall proceed in all respects as a civil action.

History of Section. G.L. 1896, ch. 187, § 61; C.P.A. 1905, § 1131; G.L. 1909, ch. 215, § 67; G.L. 1923, ch. 251, § 58; G.L. 1938, ch. 124, § 58; G.L. 1956, § 39-6-12 .

39-6-13. Superior court jurisdiction.

The superior court shall have the same power and jurisdiction over the cases referred to in §§ 39-6-11 and 39-6-12 as the court of common pleas, or special courts of common pleas, or common pleas division of the supreme court, formerly had by charter or by general law.

History of Section. G.L. 1896, ch. 187, § 62; C.P.A. 1905, § 1131; G.L. 1909, ch. 215, § 68; G.L. 1923, ch. 251, § 59; G.L. 1938, ch. 124, § 59; G.L. 1956, § 39-6-13 .

39-6-14. Counsel fees in actions against railroads.

If any person having lawful claims upon any railroad corporation for overcharge for freight or passage, or for injury or loss of merchandise, or for damage by unlawful or unwarrantable delay in the transportation or delivery of merchandise, or for injury to the person, or for the refusal to transport or deliver persons or property, shall give written notice of the same, addressed to the president or treasurer or master of transportation of the corporation, and delivered to either of the officers or to any agent having charge of any depot of the corporation, fourteen (14) days previous to commencing suit for the same, and if the corporation neglects or refuses to pay the lawful claim, then the complainant, if he or she recovers more than the amount, if any, tendered by the corporation, shall also recover reasonable compensation for the services of his or her counsel, to be allowed by the court in addition to the actual damage; and if a less amount shall be recovered, then a reasonable allowance shall be made by the court for the services of the counsel of the corporation, to be taxed in addition to and to be allowed with the defendant’s costs as now taxed and allowed by law.

History of Section. G.L. 1896, ch. 187, § 34; G.L. 1909, ch. 215, § 38; G.L. 1923, ch. 251, § 29; G.L. 1938, ch. 124, § 29; G.L. 1956, § 39-6-14 ; P.L. 2006, ch. 216, § 12.

NOTES TO DECISIONS

Notice Before Issuing Writ.

Plaintiff who issued writ against railroad before notice, but who did not enter the writ and served notice before issuance of a second writ, was entitled to attorney fees. Smallwood v. New York, N. H. & H. R.R., 26 R.I. 451 , 59 A. 314, 1904 R.I. LEXIS 105 (1904).

Tender.

To furnish a defense under this section, there must be an actual tender and not just an offer to settle, and the tender must be made after notice is given by plaintiff. Sherwood v. New York, N. H. & H. R.R., 29 R.I. 132 , 69 A. 564, 1908 R.I. LEXIS 34 (1908).

Collateral References.

Attorneys’ fees: obduracy as basis for state-court award. 49 A.L.R.4th 825.

39-6-15. Power to operate aircraft.

Any railroad company incorporated under the laws of this state and operating a railroad in this state may acquire, own, maintain, and operate, either directly or through subsidiary corporations, aircraft for the transportation of passengers and property subject to provisions of all laws of this state relative to the operation of aircraft.

History of Section. P.L. 1933, ch. 2049, § 1; G.L. 1938, ch. 111, § 1; G.L. 1956, § 39-6-15 .

39-6-16. Conversion to electric power operation.

Railroad corporations that are subject to the provisions of this chapter, whose roads are now operated by power other than electricity, may operate or contract for the operation of their roads with electric power, in such manner and with such changes in their roadbed or tracks as they may find best adapted thereto.

History of Section. P.L. 1896, ch. 400, § 1; G.L. 1909, ch. 215, § 69; G.L. 1923, ch. 251, § 60; G.L. 1938, ch. 124, § 60; G.L. 1956, § 39-6-16 .

39-6-17. Operation of trains over tracks of another company.

Railroad corporations and street railroad companies may contract that either shall perform transportation of persons and property upon and over the whole or any part of the road of the other, so far as the other has then the right by law to perform the transportation, and may contract with each other for the lease, use, or sale of their respective roads, or any part thereof, upon such terms as the directors may agree, and as may be approved by a majority of the stockholders of both corporations present and voting at meetings called for that purpose, and the corporation operating any portion of any railroad under any contract or sale shall have, in addition to its own powers, privileges, and franchises, all the powers, privileges, and franchises of the other party thereto in respect to the road, and be subject to and perform all the public duties and obligations of the other party in respect thereto.

History of Section. P.L. 1896, ch. 400, § 2; G.L. 1909, ch. 215, § 70; G.L. 1923, ch. 251, § 61; G.L. 1938, ch. 124, § 61; G.L. 1956, § 39-6-17 .

Collateral References.

Power to require railroads to permit use of tracks in street by other companies. 28 A.L.R. 969.

39-6-18. Reduction of facilities by agreements — Filing of contracts.

The facilities for travel and business on either of the roads of any corporations acting under the provisions of §§ 39-6-16 39-6-18 shall not be diminished by the terms or conditions of any agreement under this chapter, and copies of all contracts made under the provisions of the sections shall be filed with the division of public utilities and carriers within thirty (30) days after execution thereof, which shall set forth a full statement thereof in its next annual report.

History of Section. P.L. 1896, ch. 400, § 3; G.L. 1909, ch. 215, § 71; G.L. 1923, ch. 251, § 62; G.L. 1938, ch. 124, § 62; G.L. 1956, § 39-6-18 ; P.L. 1997, ch. 326, § 109.

39-6-19. Sale of equipment with reserved title or lien — Lease with option to purchase.

In any contract for the sale of railroad or street railway equipment or rolling stock, it shall be lawful to agree that the title to the property sold, or contracted to be sold, although possession thereof may be delivered immediately or at any time or times subsequently, shall not vest in the purchaser until the purchase price shall be fully paid, or that the seller shall have and retain a lien thereon for the unpaid purchase money. In any contract for the leasing or hiring of property, it shall be lawful to stipulate for a conditional sale thereof at the termination of the contract, and that the rentals or amounts to be received under the contract may, as paid, be applied and treated as purchase money, and that the title to the property shall not vest in the lessee or bailee until the purchase price shall have been paid in full and until the terms of the contract shall have been fully performed, notwithstanding delivery to and possession by the lessee or bailee; provided, that no such contract shall be valid as against any subsequent judgment creditor, or any subsequent bona fide purchaser for value and without notice, unless:

  1. The contract shall be evidenced by an instrument executed by the parties and duly acknowledged by the vendee or lessee or bailee, as the case may be, or duly proved, before some person authorized by law to take acknowledgment of deeds, and in the same manner as deeds are acknowledged or proved;
  2. The instrument shall be filed for record in the office of the secretary of state;
  3. Each locomotive engine or car so sold, leased, or hired, or contracted to be sold, leased, or hired, shall have the name of the vendor, lessor, or bailor plainly marked on each side thereof, followed by the word “Owner,” or “Lessor,” or “Bailor,” as the case may be.

History of Section. G.L. 1896, ch. 187, § 57; G.L. 1909, ch. 215, § 63; G.L. 1923, ch. 251, § 54; G.L. 1938, ch. 124, § 54; G.L. 1956, § 39-6-19 ; P.L. 1997, ch. 326, § 109.

39-6-20. Recording of contracts — Declaration of full payment or performance of conditions — Fees.

The contracts herein authorized shall be recorded by the secretary of state in a book of records to be kept for that purpose. And on payment in full of the purchase money, and the performance of the terms and conditions stipulated in any contract, a declaration in writing to that effect may be made by the vendor, lessor, or bailor, or his or her or its assignee, which declaration may be made on the margin of the record of the contract, duly attested, or it may be made by a separate instrument, to be acknowledged by the vendor, lessor, or bailor, or his or her or its assignee, and recorded as provided in this section. And for such services, the secretary of state shall be entitled to demand and retain for the use of the state the sum of fifty cents ($.50) for each one hundred (100) words recorded, for recording each of the contracts and each of the declarations, and a fee of fifty cents ($.50) for noting the declaration on the margin of the record.

History of Section. G.L. 1896, ch. 187, § 58; G.L. 1909, ch. 215, § 67; G.L. 1923, ch. 251, § 55; G.L. 1938, ch. 124, § 55; G.L. 1956, § 39-6-20 ; P.L. 1960, ch. 74, § 1; P.L. 1997, ch. 326, § 109.

39-6-21. Prior contracts for sale of equipment.

Sections 39-6-19 and 39-6-20 shall not be held to invalidate or affect in any way any contract made prior to February 21, 1893, of the kind referred to in § 39-6-19 , and any contract theretofore made may, upon compliance with the provisions of §§ 39-6-19 and 39-6-20 , be recorded as provided in § 39-6-20.

History of Section. G.L. 1896, ch. 187, § 59; G.L. 1909, ch. 215, § 65; G.L. 1923, ch. 251, § 56; G.L. 1938, ch. 124, § 56; G.L. 1956, § 39-6-21 ; P.L. 1997, ch. 326, § 109.

39-6-22. Liability of trustees and bondholders operating road.

Whenever any railroad corporation shall mortgage or convey in trust its railroad or railroad property, or any part thereof, to trustees, for the security of its bondholders or other creditors, or for the security of any class of bondholders or other creditors, and the trustees shall have taken possession of any railroad or railroad property, in pursuance of any authority contained in their mortgage or deed of trust, and shall take charge of and operate the railroad or railroad property for the benefit of the creditors for whom the trust was created, the trustees shall not, after the assent of the bondholders as hereinafter provided, be personally liable for any cause or injury arising from the operation of the road, or while they may operate the same, except for their willful mismanagement or for any contracts made by them as trustees; but all railroad property shall, the bondholders having assented thereto, be liable for the acts and proceedings of the trustees in the execution of their trusts, to the extent of the interest of the trustees of the bondholders or creditors, for whose benefit the trustees may act, and any action or other proceeding therefor shall be brought against the trustees, describing them as such.

History of Section. G.L. 1896, ch. 208, § 22; G.L. 1909, ch. 259, § 22; G.L. 1923, ch. 303, § 22; G.L. 1938, ch. 486, § 18; G.L. 1956, § 39-6-22 .

39-6-23. Annual report by trustees.

Whenever any railroad corporation, the charter whereof requires the directors to make an annual report to the general assembly, shall have passed into the hands of trustees, the trustees, instead of the directors, shall make the report while the road remains in their hands, which report shall be approved by the division of public utilities and carriers, in like manner as if it had been made by the directors of the corporation.

History of Section. G.L. 1896, ch. 187, § 53; G.L. 1909, ch. 215, § 57; G.L. 1923, ch. 251, § 48; G.L. 1938, ch. 124, § 48; G.L. 1956, § 39-6-23 .

39-6-24. Redemption of franchise and property from sale on execution.

The franchise and property of a railroad corporation may be redeemed by it, or any mortgagee thereof, from sale on execution by paying or tendering to the purchaser the sum paid therefor at the sale, with interest, at any time within sixty (60) days after the final determination of any appeal to reverse the judgment upon which the execution issued, or of any suit to test the validity of the sale, brought before the sale or within sixty (60) days thereafter; but nothing in this section shall be construed as authorizing a sale.

History of Section. G.L. 1896, ch. 177, § 16; G.L. 1909, ch. 213, § 16; G.L. 1923, ch. 251, § 63; G.L. 1938, ch. 124, § 63; G.L. 1956, § 39-6-24 ; P.L. 1997, ch. 326, § 109.

39-6-25. Rights and liabilities of purchaser at mortgage or judicial sale.

The purchaser of any railroad or street railway and of the property, rights, privileges, and franchises therewith connected, at a sale under a valid foreclosure of a legal mortgage thereof, or at a valid sale under the power of sale of the mortgage, or at a valid sale under the orders and directions of any court of competent jurisdiction, and the grantee and successors in title of any purchaser, shall be subject to all and the same duties, liabilities, restrictions, and other provisions respecting the railroad or street railway, or arising from the construction, maintenance, and operation thereof, and shall have all and the same powers and rights relating to the railroad or street railway, and the construction, maintenance, and operation thereof, which the corporation by which the mortgage was made, or which was the owner of the railroad or street railway at the time of the sale, was subject to and had at the time of the sale.

History of Section. G.L. 1896, ch. 177, § 17; G.L. 1909, ch. 213, § 17; G.L. 1923, ch. 251, § 64; G.L. 1938, ch. 124, § 64; G.L. 1956, § 39-6-25 .

39-6-26. Right of purchaser to convey to corporation.

Any purchaser of any railroad or street railway, and of any corresponding property, rights, privileges, and franchises, shall have the right and is hereby authorized and empowered to sell, assign, transfer, and convey all and each railroad or street railway and the property, rights, privileges, and franchises so purchased by him or her to any legally organized corporation duly created and empowered to construct, maintain, and operate a railroad or street railway, and to purchase, maintain, operate, and use any railroad or street railway, and the property, rights, privileges, and franchises, upon such terms and conditions as may be mutually agreed upon between the purchaser and the corporation; and the person so selling any railroad or street railway and the property, rights, privileges, and franchises to the corporation, may receive in payment for the railroad or street railway the stock or bonds of the corporation at not less than the par value thereof.

History of Section. G.L. 1896, ch. 177, § 18; G.L. 1909, ch. 213, § 18; G.L. 1923, ch. 251, § 65; G.L. 1938, ch. 124, § 65; G.L. 1956, § 39-6-26 .

39-6-27. Safety, sanitation, and adequate shelter for railroad employees.

  1. The public utilities administrator is hereby authorized to promulgate and enforce reasonable rules and regulations relating to safety, sanitation, and adequate shelter as affecting the welfare and health of railroad trainpersons, engine persons, yard persons, maintenance of way employees, highway crossing watchpersons, clerical, platform, freight house, express employees, station agents, and signal station operators.
  2. In addition to any rules and regulations promulgated by the public utilities administrator as set forth in this section, the public utilities commission shall promulgate rules and regulations and provide for penalties for the violation thereof with respect to the installation of heaters and safety equipment on track motor vehicles or self-propelled equipment.

History of Section. P.L. 1959, ch. 55, § 1; P.L. 1987, ch. 179, § 1.

39-6-27.1. Maintenance of way employees in area of double or multiple tracks.

Whenever maintenance of way crews or employees are working in the area of double or multiple railroad tracks, the following safety precautions shall be mandatory:

  1. All trains shall be notified of the location of the crews or employees by mile markers or mile posts by train order.
  2. All trains operating adjacent to such a work area shall reduce speed to freight train speed, not to exceed fifty miles per hour (50 m.p.h.).
  3. One member of the crew shall be assigned as a flagperson to warn of approaching trains and shall be equipped with a radio, horn, and flag.
  4. No work shall be conducted and all employees shall stand clear while a train is approaching, passing, and clearing a work area.
  5. Failure by the railroad company to issue information by train order, which results in any violation of the above requirements, will subject the railroad company to a fine of five hundred dollars ($500) for each violation. The fine will be collected by the public utilities commission and remitted to the general fund of the state.

History of Section. P.L. 1988, ch. 183, § 1; P.L. 1989, ch. 104, § 1.

39-6-27.2. After accident counseling.

  1. Every railroad corporation and railway company shall provide or make available to every member of an operating crew involved in an accident on its railway or right of way that results in loss of life or serious bodily injury, counseling services or other critical incident stress debriefing services within forty-eight (48) hours; provided, that the engineer, or other operating crew member involved in the accident shall be relieved from duty with compensation and applicable benefits at the site of the accident for a minimum of three (3) days; provided, further, that the leave may be without compensation and benefits if the railroad corporation makes the affirmative showing that the accident was due to negligence of an engineer or other operating crew member; provided, however, that any person who is otherwise eligible for these benefits and who has been found to have not acted negligently shall not be precluded from participation due to the negligence of a fellow crew member.
  2. Any engineer returning to duty following such leave shall, if he or she so requests, be assigned an assistant engineer or other qualified person who shall accompany him or her for such time as may be necessary to guarantee the public safety, or until an appropriate medical practitioner has determined that the engineer does not suffer from post-traumatic stress disorder.
  3. The administrator of the public utilities commission shall promulgate rules and regulations necessary for the implementation and enforcement of the provisions of this section.

History of Section. P.L. 1993, ch. 458, § 1.

39-6-28. [Reserved.]

39-6-29. Caboose car or rider car.

  1. It shall be unlawful for any corporation or individual to maintain, equip, or use within the state, any railroad caboose car, a rider car, or any car used as either a caboose car or rider car, unless the car is equipped with suitable and adequate water supply to provide for sanitary washing, toilet, and drinking facilities, and further, unless the interior of the car is illuminated by electric lights of sufficient candle power to enable employees working in the caboose or rider cars to perform their respective duties safely and without undue eye strain; provided, however, that any of the aforesaid car or cars that are operated or used exclusively between one hour after sunrise and one hour before sunset need not be equipped as provided in this section.
  2. Any violation of the provisions of this section shall be considered a misdemeanor, punishable by a fine of not less than two hundred dollars ($200) or more than one thousand dollars ($1,000) for each separate offense.

History of Section. P.L. 1960, ch. 38, § 1; P.L. 1997, ch. 326, § 109.

39-6-30. Protection of railroad employees.

As a condition of his or her approval of any abandonment of railroad facilities, not including a relocation by a carrier or carriers by railroad subject to the provisions of this title, the public utilities administrator shall require a fair and equitable arrangement to protect the interest of the railroad employees adversely affected who are not protected by a collective bargaining agreement in such an event, and he or she shall include in his or her orders of approval such terms and conditions for the protection of the employees as he or she deems to be fair and equitable and to be substantially equivalent to those then generally imposed by the Interstate Commerce Commission in abandonment proceedings brought before the commission; provided, however, that the conditions shall provide, as a minimum, that during the period of four (4) years from the effective date of the order, the transaction will not result in employees of the carrier or carriers by railroad affected by the order being in a worse position with respect to their employment, except that the protection afforded to any employee pursuant to this section shall not be required to continue for a longer period following the effective date of the order than the period during which the employee was in the employ of the carrier or carriers prior to the effective date of the order; and, provided further, that, notwithstanding any other provisions of this section, the public utilities administrator may accept, as a fair and equitable arrangement for the protection of railroad employees affected by any order of the public utilities administrator issued under this section, an agreement pertaining to the protection of the interest of employees entered into by any carrier or carriers by railroad and the duly authorized representative or representatives of its or their employees.

History of Section. P.L. 1968, ch. 193, § 1.

39-6-31. Declaration of policy regarding abandoned railroad property.

The general assembly finds and declares that the preservation of open spaces and the orderly control and development of unused or undeveloped land bears a substantial relationship to the public health, safety, and welfare of the people of this state. When a railroad is granted permission to abandon any rail line by the Interstate Commerce Commission and gives up use of the entire width of its right of way in that area, an opportunity is afforded for the establishment of a facility for another means of transportation or for a necessary public recreation or conservation area in the community land which was not theretofore readily available. Railroads, by reason of their statutory privilege of land acquisition by condemnation and statutory protection from acquisition of their land by condemnation, are a proper subject for a special statutory procedure for the disposition of their unused or undeveloped lands.

History of Section. P.L. 1969, ch. 240, § 9; P.L. 1992, ch. 331, § 1.

39-6-32. Disposition of abandoned railroad property.

Whenever any railroad is granted permission to abandon any rail line by the Interstate Commerce Commission and ceases to be used by the railroad claiming title thereto, and within one year thereafter the head of any department, board, bureau, commission, or agency of the state government, hereinafter referred to as the acquiring authority, declares that in his or her opinion the acquisition thereof will be advantageous to the establishment, construction, development, betterment, or maintenance of any governmental facility, public work, public improvement, or public preserve, the acquiring authority shall be and hereby is authorized and empowered, within the limits of the appropriations available or that shall be made available therefor, with the approval of the governor, to acquire interests, estates, easements, and privileges in the right of way for public use, by purchase, lease, gift, or by proceedings pursuant to § 39-6-33 .

History of Section. P.L. 1969, ch. 240, § 9; P.L. 1992, ch. 331, § 1.

39-6-33. Determination of price to be paid.

If the railroad shall agree with the acquiring authority upon the sum to be paid, and the price shall be approved by the state properties committee, the sum agreed shall be paid to the railroad upon delivery of proper instruments of conveyance. If no agreement as to the price to be paid is reached within one year following the abandonment, then within six (6) months thereafter, or if the abandoned right of way has not been disposed of otherwise, then at any time thereafter, the acquiring authority may petition the superior court for one of the counties in which the land is situated for an assessment by a judge thereof of the fair value to be paid for the estate or interest in the land. A hearing on the petition shall be conducted as in other civil actions, and either party shall have the right to appeal the decision as provided by law. Within thirty (30) days after a final judgment is entered, the acquiring authority shall tender payment in accordance therewith to the railroad and receive proper instruments of conveyance. If the acquiring authority shall fail to make tender within the time allowed, the railroad shall be at liberty to dispose of the land or any estate or interest therein in any manner it shall see fit.

History of Section. P.L. 1969, ch. 240, § 9.

Chapter 6.1 Railroad Preservation

39-6.1-1. Definitions.

As used in this chapter:

  1. “Agent for the state” means and includes the department of transportation as agent for the state as that term is used in 49 U.S.C. § 1654 and any amendments to it.
  2. “Department” means the department of transportation or other appropriate state agency of this state.
  3. “Includes” and variants of it should be read as if the phrase “but is not limited to” were also set forth.
  4. “Persons” means individuals, corporations, partnerships, or foreign and domestic associations.
  5. “Rail properties” means assets or rights, both real and personal, owned, leased, or otherwise controlled by a railroad that are used or useful in providing rail transportation service.
  6. “Rail service” means both freight and passenger service.

History of Section. P.L. 1976, ch. 28, § 1.

Federal Act References.

49 U.S.C. § 1654, referred to in this section, is now revised as 49 U.S.C. § 333.

Comparative Legislation.

Rail transportation:

Conn. Gen. Stat. § 13b-32 et seq.

Mass. Ann. Laws ch. 161C, § 1 et seq.

39-6.1-2. General powers of department.

The department is hereby authorized to exercise those powers necessary for the state to qualify for rail service assistance pursuant to the provisions of 49 U.S.C. § 1654 or other applicable federal laws, including authority:

  1. To establish a state plan for rail transportation and local rail services.
  2. To administer and coordinate the state plan.
  3. To provide in the plan for the equitable distribution of federal rail service assistance.
  4. To promote, operate, supervise, and support safe, adequate, and efficient rail services, or to enter into contractual relationships with public or private agencies, persons, or corporations to do so.
  5. To employ sufficient trained and qualified personnel for these purposes.
  6. To maintain adequate programs of investigation, research, promotion, and development in connection with such purposes and to provide for public participation therein.
  7. To provide satisfactory assurances on behalf of the state that fiscal control and fund accounting procedures will be adopted by the state as may be necessary to assure proper disbursement of and accounting of federal funds paid to the state as rail service assistance.
  8. To comply with the regulation of the Secretary of Transportation of the United States Department of Transportation affecting federal rail service programs.
  9. To do all things otherwise necessary to maximize federal assistance to the state under 49 U.S.C. § 1654 or other applicable federal laws.

History of Section. P.L. 1976, ch. 28, § 1.

Federal Act References.

49 U.S.C. § 1654, referred to in this section, is now revised as 49 U.S.C. § 333.

39-6.1-3. Assistance to rail lines.

The department is hereby authorized to provide financial assistance, within the limits of the funds appropriated for this purpose, for the continuation of operations and maintenance of any railroad within or serving the state as provided for in 49 U.S.C. § 1654 or other relevant federal legislation. The department may also act as the agent in cooperation with any transportation authority, local governmental units, any group of rail users, or any person, and the federal government in any rail service assistance program.

History of Section. P.L. 1976, ch. 28, § 1.

Federal Act References.

49 U.S.C. § 1654, referred to in this section, is now revised as 49 U.S.C. § 333.

39-6.1-4. Access to information.

The department, in performing its planning function, is authorized to request any railroad to provide such data and information as are necessary for the planning process. Railroads operating within the state shall provide the information within sixty (60) days of the date of the request. The department shall exercise all necessary caution to avoid disclosure of confidential information supplied under this section.

History of Section. P.L. 1976, ch. 28, § 1; P.L. 1976, ch. 143, § 1.

39-6.1-5. Acquisition and necessity.

  1. The department, as sole agent for the state, may acquire by purchase, lease, or otherwise, any portion or portions of the rail property of any railroad corporation, including the tracks and ties, rights of way, land, buildings, appurtenances, and other facilities necessary for the operation of railroads. In addition, the department may so acquire, improve, and maintain any other property found by the department to be necessary for the operation of a railroad subject to the approval of the state properties committee.
  2. The authority to so acquire rail properties extends to rail properties both within and not within the jurisdiction of the Interstate Commerce Commission. It also includes rail properties within the purview of 49 U.S.C. § 1654, any amendments to it, and any other relevant federal legislation.
  3. The acquisition of the rail properties, and other property, by the department is for the purpose of the continued and future operation of a railroad deemed to be in the public interest. The acquisition of the rail properties and other property is declared to be a public purpose and to be reasonably necessary. This action may be taken in concert with another state or states as necessary to insure continued rail service in this state.

History of Section. P.L. 1976, ch. 28, § 1.

Federal Act References.

49 U.S.C. § 1654, referred to in this section, is now revised as 49 U.S.C. § 333.

39-6.1-6. Operation, sale, or lease.

The department may operate itself or may sell, transfer, or lease all, or any part, of the rail properties and other property acquired under the provisions of this chapter to any responsible person, firm, or corporation, whether private, quasi-public, or public, for continued operation and maintenance of a railroad, or other public purpose, provided that approval for the continued operation, or other public purpose is granted by the Interstate Commerce Commission of the United States, whenever approval is required. The sale, transfer, or lease shall be for a price, and subject to any further terms and conditions the department feels are necessary and appropriate to effectuate the purposes of this chapter and subject to the approval of the state properties committee.

History of Section. P.L. 1976, ch. 28, § 1.

39-6.1-7. Interstate Commerce Commission certificate.

After acquiring any railroad lines within the state, the department shall assist any responsible person, firm, or corporation, to secure, as promptly as possible, any order or certificate required by the Interstate Commerce Commission for the performance of railroad service. The department shall also give any assurances or guarantees that are necessary or desirable to carry out the purposes of this chapter.

History of Section. P.L. 1976, ch. 28, § 1.

39-6.1-8. Title to property of railroads.

The department may take whatever steps are necessary in order to determine the absolute fee simple title ownership of all rail properties of any railroad within the state. The determination may include the status of the rail properties with respect to easements, rights of way, leases, reversionary rights, fee simple title ownership, and any and all related title matters. The department may retain attorneys, experts, or other assistants, and issue any contracts as are necessary to make the title determination.

History of Section. P.L. 1976, ch. 28, § 1.

39-6.1-9. Sale of rail properties.

All rail properties within the state offered for sale by any railway corporation after April 9, 1976, shall be offered for sale to the state in the first instance at the lowest price at which the railway corporation is willing to sell. The railway corporation shall notify the state in writing if it desires to offer for sale any rail properties. The state shall have a period of not more than ninety (90) days from receipt of the notification to accept the offer. If the offer is not accepted in writing within the period of time, the railway corporation shall be free to sell the rail properties to any other party. For purposes of this section only, rail properties shall mean only those rail properties for which permission to abandon rail lines thereon has not been granted by the Interstate Commerce Commission at the time of offer for sale. This section shall apply only to the sale of rail properties and not the sale of easements or similar interests in rail properties. No person, firm, or corporation shall be permitted to take any of the properties of a railway corporation by condemnation.

History of Section. P.L. 1976, ch. 28, § 1; P.L. 1976, ch. 143, § 1; P.L. 1992, ch. 332, § 1.

NOTES TO DECISIONS

Offer to State.

The state clearly accepted the defendant’s offer of sale of the property within the required time, notwithstanding that payment was not tendered within 30 days, and that acceptance did not alter the original offer such that it became a counter offer. State Dep't of Transp. v. Providence & Worcester R.R., 674 A.2d 1239, 1996 R.I. LEXIS 135 (1996).

39-6.1-10. Cooperation between states.

The department may cooperate with other states in connection with the purchase, operation, or assistance of or to any rail properties within this state. The department may also acquire trackage rights in other states and rail properties lying in other states in order to carry out the intentions and purposes of this chapter. In carrying out the authority conferred by this section, the department may enter into general contractual arrangements, including joint purchasing and leasing of rail properties, with other states.

History of Section. P.L. 1976, ch. 28, § 1.

39-6.1-10.1. Massachusetts Bay Transportation Authority.

Notwithstanding any general or special law to the contrary, the Massachusetts Bay Transportation Authority (“MBTA”), a body politic and corporate and a political subdivision of the Commonwealth of Massachusetts, and all its real and personal property shall be exempt from taxation and from betterments and special assessments; and the MBTA shall not be required to pay any tax, excise, or assessment to or for this state or any of its political subdivisions; nor shall the MBTA be required to pay any fee or charge for any permit or license, nor any compliance fee, issued to it by this state, by any department, board, or officer thereof, or by any political subdivision of this state; and the MBTA shall be exempt from tolls for the use of highways, bridges, and tunnels. Bonds and notes issued by the MBTA in support of purchases and/or improvements for maintaining and/or improving commuter rail service to and/or within the state of Rhode Island, their transfer and the income therefrom, including any profit made on the sale thereof, shall at all times be free from taxation with this state.

History of Section. P.L. 2003, ch. 386, § 2.

39-6.1-11. Cooperation between the department and local governmental units.

In weighing the varied interests of the residents of this state, the department shall give consideration, as best as the situation allows, to the individual interest of any city or town expressing a desire to acquire a portion, or all, of the abandoned real estate located within its jurisdiction. The department may exercise its powers under this chapter to acquire the abandoned property for subsequent conveyance to the city or town.

History of Section. P.L. 1976, ch. 28, § 1.

39-6.1-12. Federal funds — Appropriations.

The department may utilize federal funds, grants, gifts, or donations that are available, and any sums that are appropriated, in carrying out the purposes of this chapter. The department may apply for entitlement or other funds available under the provisions of 49 U.S.C. § 1654 or other federal programs.

History of Section. P.L. 1976, ch. 28, § 1.

Federal Act References.

49 U.S.C. § 1654, referred to in this section, is now revised as 49 U.S.C. § 333.

39-6.1-13. Application for federal loans.

The department may apply for a loan or a guarantee of a loan under any applicable federal local rail assistance programs, within the limit of funds appropriated for those purposes.

History of Section. P.L. 1976, ch. 28, § 1; P.L. 1984, ch. 81, § 13.

39-6.1-14. [Repealed.]

History of Section. P.L. 1976, ch. 28, § 14; Repealed by P.L. 1976, ch. 143, § 2.

Compiler’s Notes.

Former § 39-6.1-14 concerned delinquent railroad taxes.

39-6.1-15. Purchase of rolling stock, equipment, and machinery.

The department is authorized to purchase any railroad rolling stock, equipment, and machinery necessary for the operation and maintenance of any rail properties purchased by it on behalf of the state, with any funds made available for this purpose. The department may also acquire, and have available, a pool of equipment and machinery that may be utilized by the operators of the rail properties for the purpose of track maintenance, and other related railroad activities, upon terms and conditions determined by the department.

History of Section. P.L. 1976, ch. 28, § 1.

39-6.1-16. Rebuilding, modernization, and maintenance of rail properties.

The department may contract for the rebuilding or relocation of any rail properties acquired pursuant to this chapter, within the provisions of 49 U.S.C. § 1654 or any other appropriate legislation. The department may also spend any sums appropriated, as well as any other available funds, for the modernization, rebuilding, and relocation of any rail properties owned by the state or by a private carrier. The department may do any maintenance on any rail properties owned by the state as is necessary in the public interest.

History of Section. P.L. 1976, ch. 28, § 1.

Federal Act References.

49 U.S.C. § 1654, referred to in this section, is now revised as 49 U.S.C. § 333.

39-6.1-17. Authorization to contract to improve rail transportation service.

The department may contract with any domestic or foreign person, firm, corporation, agency, or government to provide, operate, maintain, or improve rail transportation service on the rail properties acquired by the state under this chapter, or may provide such services, operation, and maintenance itself.

History of Section. P.L. 1976, ch. 28, § 1.

39-6.1-18. Disposition of acquired rail properties.

Whenever the department determines that any rail properties acquired by the state are no longer needed for railroad purposes, it may, with the permission of the governor, permanently or temporarily transfer the rail properties to any other state department or agency, or political subdivision of the state, which shall utilize the properties for a public purpose. Whenever more than one department or agency, or political subdivision, wishes to utilize the property, the department shall resolve such a conflict and make a prompt determination of the reasonable and proper order of priority, taking into consideration any applicable state plans, policies, and objectives. If no state department or agency or political subdivision wants the properties, the department may sell them; provided, however, that all dispositions shall be with the approval of the state properties committee.

History of Section. P.L. 1976, ch. 28, § 1.

39-6.1-19. Appropriations.

The general assembly shall, from time to time, appropriate such funds as are necessary to effectuate the purposes of this chapter.

History of Section. P.L. 1976, ch. 28, § 1.

39-6.1-20. Rules and regulations.

The department shall promulgate rules and regulations consistent with and for the purpose of adequately implementing the foregoing provisions of this chapter.

History of Section. P.L. 1976, ch. 28, § 1.

Chapter 7 Operation of Railroads Generally

39-7-1. Minimum clearance on bridges erected over tracks.

No bridges, viaducts, or other obstructions shall be constructed, insofar as practicable, over tracks in a railroad yard over which switching movements will be made at not less than twenty-three feet (23´) in the clear, and over any other railroad tracks at not less than twenty-two feet, six inches (22’6"), measuring from the bottom of the lowest timber to the top of the rail on the tracks. An exemption may be granted from any and all requirements of this section; provided, however, that any exemption must be limited to the specific bridge, viaduct, or other obstructions upon agreement between the department of transportation, public utilities administrator, railroad company, and the designated labor representative representing the railroad employees whose duties are to be atop of cars while in motion; provided, further, the agreement shall fix and prescribe reasonable regulations governing the location exempted; and provided, further, that an agreement between the aforesaid parties must be consummated within fifteen (15) days from the date of the request for an exemption from any and all requirements of this section. In case of failure to consummate an agreement, the public utilities administrator shall issue an order on the request for an exemption. The public utilities administrator shall, when issuing an order, take into consideration that his or her paramount responsibility in his or her decision to issue the exemption must be the safety of the railroad employees whose duties are to be atop of cars while in motion.

History of Section. G.L. 1896, ch. 187, § 24; G.L. 1909, ch. 215, § 28; G.L. 1923, ch. 251, § 19; G.L. 1938, ch. 124, § 19; G.L. 1956, § 39-7-1 ; P.L. 1961, ch. 63, § 1; P.L. 1973, ch. 199, § 5.

Cross References.

Functions of department of business regulation, § 42-14-2 .

Comparative Legislation.

Equipment and operation of railroads:

Conn. Gen. Stat. § 13b-324 et seq.

Mass. Ann. Laws ch. 160, § 118 et seq.

39-7-2. Blocking of frogs, switches, and guardrails.

Every railroad corporation, operating a railroad or part of a railroad in this state, shall adjust, fill, or block the frogs, switches, and guardrails on its track, with the exception of guardrails on bridges, so as to prevent the feet of its employees from being caught therein. The work shall be done to the satisfaction of the division of public utilities and carriers, evidenced by its certificate. Any railroad corporation failing to comply with the provisions of this section shall be fined an amount not less than one hundred dollars ($100) but not more than one thousand dollars ($1,000).

History of Section. G.L. 1896, ch. 187, § 50; G.L. 1909, ch. 215, § 54; G.L. 1923, ch. 251, § 45; G.L. 1938, ch. 124, § 45; G.L. 1956, § 39-7-2 .

Cross References.

Hours of work for street railway employees, § 28-11-2 et seq.

Collateral References.

Duty of railroad company to prevent injury to employee due to surface condition of yard. 57 A.L.R.2d 547.

39-7-3. Brakes on passenger cars.

Every railroad corporation whose cars are propelled by steam shall cause a power brake to be attached to every passenger car used for conveyance of passengers, which brake shall be so arranged that it may be put in operation by the engineer when the train is in motion. Every railroad corporation that shall use any passenger car for the conveyance of passengers, without the power brake so applied, shall for every offense be fined one hundred dollars ($100), one-half (1/2) thereof to the use of the complainant and one-half (1/2) thereof to the use of the state; but this penalty shall not apply to an incidental conveyance of passengers in freight cars, nor to “dummy cars,” so-called, nor to a passenger car attached to the rear end of a freight train or dummy engine.

History of Section. G.L. 1896, ch. 187, §§ 22, 23; G.L. 1909, ch. 215, §§ 26, 27; G.L. 1923, ch. 251, §§ 17, 18; G.L. 1938, ch. 124, §§ 17, 18; G.L. 1956, § 39-7-3 .

39-7-4. Passenger cars not to be followed by cars loaded with dirt or stone.

No car or carriage for the transportation of passengers over any railroad shall be propelled on the railroad when placed between the locomotive and cars loaded with dirt or stone. Every railroad corporation upon whose railroad shall be propelled cars or carriages for the transportation of passengers, so placed, shall be fined five hundred dollars ($500), one-half (1/2) thereof to the use of the complainant and one-half (1/2) thereof to the use of the state.

History of Section. G.L. 1896, ch. 187, §§ 20, 21; G.L. 1909, ch. 215, §§ 24, 25; G.L. 1923, ch. 251, §§ 15, 16; G.L. 1938, ch. 124, §§ 15, 16; G.L. 1956, § 39-7-4 .

39-7-5. Method of illuminating passenger cars — Fire equipment.

No passenger car on any railroad shall be lighted by naphtha or by any illuminating oil or fluid made in part of naphtha, or wholly or in part from coal or petroleum, or other substance or material which will ignite at a temperature of less than three hundred degrees (300 degrees) fahrenheit. Every railroad corporation shall provide and keep in every car used by it for the transportation of passengers one pail, one axe, and one iron bar, which shall at all times be kept in order for use. Every railroad corporation violating the provisions of this section shall be fined one hundred dollars ($100) for each offense, one-half (1/2) thereof to the use of the complainant, and one-half (1/2) thereof to the use of the state.

History of Section. G.L. 1896, ch. 187, § 26; G.L. 1909, ch. 215, § 30; G.L. 1923, ch. 251, § 21; G.L. 1938, ch. 124, § 21; G.L. 1956, § 39-7-5 .

Cross References.

Uniform services and rates, § 39-2-9 et seq.

Collateral References.

Liability of carrier for injury to passenger due to improper lighting. 8 A.L.R.2d 233.

39-7-6. Heating of cars.

No passenger, mail, or baggage car, on any railroad in this state, shall be heated by any method of heating by furnace or heater, unless the furnace or heater shall first have been approved in writing by the division of public utilities and carriers; provided, however, that in no event shall a common stove be allowed in a car. Every railroad corporation that shall use any car in violation of the provisions of this section shall be fined one hundred dollars ($100) for every day on which the car shall be used, one-half (1/2) thereof to the use of the complainant, and one-half (1/2) thereof to the use of the state.

History of Section. G.L. 1896, ch. 187, § 27; G.L. 1909, ch. 215, § 31; G.L. 1923, ch. 251, § 22; G.L. 1938, ch. 124, § 22; G.L. 1956, § 39-7-6 .

Collateral References.

Duty of carrier to heat car. 33 A.L.R. 168.

39-7-7. Water in passenger cars.

Every railroad corporation shall carry on each passenger car operated by steam a sufficient quantity of good water, with suitable vessels for using the water, and every railroad corporation refusing or neglecting to comply with the requirements of this section shall be fined twenty-five dollars ($25.00).

History of Section. G.L. 1896, ch. 187, § 25; P.L. 1902, ch. 993, § 1; G.L. 1909, ch. 215, § 29; G.L. 1923, ch. 251, § 20; G.L. 1938, ch. 124, § 20; G.L. 1956, § 39-7-7 .

Collateral References.

Unwholesome water or food furnished by carrier causing injury. 18 A.L.R. 1116.

39-7-8. Ejection of disorderly or nonpaying passengers.

If any person behaves in a disorderly manner, or refuses to pay the regular fare, or rides upon the platform of a car after having been told by the conductor or trainperson to go inside the car, the train may be stopped and he or she may be ejected at any regular station on the road; and every person ejecting a passenger under the provisions of this section at any other place than at a regular station shall be fined one hundred dollars ($100).

History of Section. G.L. 1896, ch. 187, § 43; G.L. 1909, ch. 215, § 47; G.L. 1923, ch. 251, § 38; G.L. 1938, ch. 124, § 38; G.L. 1956, § 39-7-8 .

Cross References.

Interference with members of crew, penalty, § 11-36-3 .

Riding locomotive or freight car without right, § 11-36-11 .

Special police, §§ 12-2-1 et seq., 45-16-10 .

Unauthorized stopping of train, penalty, § 11-36-2 .

Collateral References.

Validity and construction of statute or ordinance specifically criminalizing passenger misconduct on public transportation. 78 A.L.R.4th 1127.

39-7-9. Approach of railroad junctions or drawbridges.

  1. Every person driving a locomotive, when approaching any crossing or junction of any two (2) railroads where the rails of one cross or connect with the rails of the other at grade, or when approaching any drawbridge now in use as such, shall stop the locomotive at some point within the distance of five hundred feet (500´) from the crossing, junction, or drawbridge, and before reaching the same, and shall not drive the locomotive over the crossing, junction, or drawbridge, at a greater rate of speed than six miles per hour (6 m.p.h.); provided, however, that the division of public utilities and carriers may grant to any railroad corporation the privilege of crossing the junction or drawbridge without stopping, whenever it determines the same can be done consistently with the public safety.
  2. Every person violating the provisions of this section shall be fined one hundred dollars ($100); and the railroad corporation in whose employment, or upon whose railroad, the person shall be at the time of committing such offense, shall be fined three hundred dollars ($300).

History of Section. G.L. 1896, ch. 187, §§ 14, 15; G.L. 1909, ch. 215, §§ 17, 18; G.L. 1923, ch. 251, §§ 8, 9; G.L. 1938, ch. 124, §§ 8, 9; G.L. 1956, § 39-7-9 .

Collateral References.

Validity and construction of railroad stop statute. 2 A.L.R. 156.

39-7-10. Whistles in vicinity of Hamlet station.

The Providence and Worcester railroad company and its lessees, the New York, New Haven and Hartford railroad company, are hereby forbidden to blow or cause to be blown or permit any of its employees to blow any locomotive signal whistles along its tracks, between the Hamlet Station and the crossing over the Blackstone River next northerly thereof, except in cases of emergency and apparent danger to life and property.

History of Section. P.L. 1896, ch. 432, § 1; G.L. 1909, ch. 215, § 19; G.L. 1923, ch. 251, § 10; G.L. 1938, ch. 124, § 10; G.L. 1956, § 39-7-10 .

39-7-11. Maintenance of margins on yard tracks.

  1. In order to provide railroad employees a reasonably safe place to work, it shall be the duty of all persons, firms, or corporations engaged in the operation of railroads in this state to keep and maintain those margins alongside their yard tracks, except designated clean out and repair tracks, where the railroad employees are required to walk frequently in the course of their duties, reasonably free from debris and vegetation that unreasonably affects the safety of the employees while working. This section shall be enforced by the public utilities administrator upon complaint and after due hearing.
  2. Any violation of the provisions of this section shall be deemed a misdemeanor, punishable by a fine of not less than one hundred dollars ($100) but not more than five hundred dollars ($500) for each separate offense.

History of Section. P.L. 1960, ch. 195, § 1.

Collateral References.

Duty of railroad company to prevent injury to employee due to surface condition of yard. 57 A.L.R.2d 493.

39-7-12. Catwalks and handrails on bridges.

Every railroad corporation or railroad company operating a railroad within this state shall on and after September 1, 1993, maintain and construct a handrail and catwalk on each railroad bridge and/or trestle that is constructed or renovated for use by the railroad. The handrail and catwalk shall extend the full length of the bridge or trestle. Every railroad that shall violate the provisions of this section shall be guilty of a misdemeanor and shall be fined not more than one thousand dollars ($1,000). Each violation of this section shall be a separate offense. Notwithstanding any provision of law to the contrary, a violation of this section shall be classified as a misdemeanor.

History of Section. P.L. 1993, ch. 450, § 1.

Chapter 8 Railroad Crossings

39-8-1. Surfacing of highways crossed at grade.

Every railroad corporation whose roadbed crosses the public highway at grade shall cause the crossing to be covered with suitable material for highway travel so that the surface of the highway at the crossing shall not at any time be lower than three-fourths (3/4) of one inch (1") below the tops of the rails at the crossing; and every railroad that shall neglect or refuse to comply with the provisions of this section, after being notified by the city or town council of the city or town wherein the crossing is located, shall be fined not exceeding one hundred dollars ($100).

History of Section. G.L. 1896, ch. 187, § 49; G.L. 1909, ch. 215, § 53; G.L. 1923, ch. 251, § 44; G.L. 1938, ch. 124, § 44; G.L. 1956, § 39-8-1 .

Cross References.

Functions of department of business regulations, § 42-14-2 .

Improvement or reconstruction by director of transportation, § 24-8-10 .

Comparative Legislation.

Crossings:

Conn. Gen. Stat. § 13b-270 et seq.

Mass. Ann. Laws ch. 159, § 57 et seq.; ch. 160, § 95 et seq.

39-8-1.1. Commission control of grade crossings.

In the exercise of the police power of the state for the safety of its inhabitants, the general assembly vests in the commission the authority and power to determine the point at which and the manner in which any grade crossing of a railroad and a street shall be constructed and the jurisdiction to determine whether any crossing should be altered, relocated, abolished, or eliminated, and the manner and conditions under which the crossings shall be maintained, even if the order of the commission has the effect of depriving a municipality of control of its streets.

History of Section. P.L. 1969, ch. 240, § 10.

NOTES TO DECISIONS

Retroactive Application.

Petitioners’ contention that the commission’s power over railroad crossings under this section applied only to crossings built subsequent to approval of this section, would defeat the intent of the legislature to provide for both existing crossings and crossings to be built after the enactment of this section. East Greenwich Fire Dist. v. Penn Cent. Co., 111 R.I. 303 , 302 A.2d 304, 1973 R.I. LEXIS 1206 (1973).

39-8-1.2. Definitions.

As used in this title:

  1. “Private crossings” shall mean and refer to those crossings over railroad tracks at grade that have been established by written agreement between the railroad, the tracks of which are being crossed, and the party or parties who are given exclusive right of passage over the private crossing.
  2. “Public crossings” shall mean and refer to those crossings of railroad tracks at grade that have been laid out or built with the consent of the commission expressed in writing as provided in § 39-8-3 , or have been designated as public crossings by order of a court of competent jurisdiction.

History of Section. P.L. 1969, ch. 240, § 10.

39-8-1.3. Authorization for private crossing.

No railroad owning railroad tracks within the state shall enter into any agreement of any nature whatsoever with any private party for the establishment of a private crossing at grade, unless and until the railroad shall have obtained permission from the commission for the establishment of the private crossing.

History of Section. P.L. 1969, ch. 240, § 10; P.L. 1973, ch. 199, § 6.

39-8-1.4. Barricading of crossings.

The general assembly hereby declares that any private railroad crossing found by the commission after a hearing to be dangerous or a hazard to the public or to those using trains is a public nuisance, and the commission may order the railroad to barricade the crossing as a matter of public safety.

History of Section. P.L. 1969, ch. 240, § 10.

39-8-2. Raising or lowering of highway to eliminate grade crossing.

If the city or town council of any city or town where a turnpike or highway crossed by a railroad on a level therewith is situated, is of the opinion that it is necessary for the security of the public that the turnpike or highway should be raised or lowered, so as to pass over or under the railroad, it may request in writing that the corporation owning the railroad raise or lower the turnpike or highway. If the corporation neglects or refuses to do so, the city or town council may apply to the commission to decide upon the reasonableness of the request. If the commission, after due notice and hearing the parties, shall decide that the lowering or raising of grade is necessary for the security of the public, the corporation shall comply with the decision; provided, that either party shall have the right, in accordance with chapter 5 of this title, to petition the supreme court for relief, and the court shall have full power to finally decide the question as to the necessity of changing the grade. The cost and expense of making the change of grade shall be borne by the railroad corporation and the city or town asking for the change, in the proportion as may be decided by the court. If, after the decision of the court that a change of grade is necessary, or if, having taken no appeal from the decision of the commission, the corporation shall unreasonably neglect or refuse to change the grade, the city or town council may proceed to make the change, and may, in an action against the corporation, recover all charges and expenses occasioned by making the alterations.

History of Section. G.L. 1896, ch. 187, § 44; C.P.A. 1905, § 1226; G.L. 1909, ch. 215, § 48; G.L. 1923, ch. 251, § 39; G.L. 1938, ch. 124, § 39; G.L. 1956, § 39-8-2 ; P.L. 1973, ch. 199, § 6; P.L. 1984, ch. 81, § 14; P.L. 2006, ch. 216, § 13.

Cross References.

Review of ordinances by division of public utilities and carriers, § 39-4-18 .

Collateral References.

Liability of railroad or other private landowner for vegetation obscuring view at railroad crossing. 66 A.L.R.4th 885.

39-8-3. Consent to establishment of grade crossing.

No railroad corporation shall lay out or build its road or lay its tracks across any railroad, street, highway, turnpike, or traveled way at grade, and no street, highway, turnpike, or road shall be laid out or built across any railroad track at grade, except by the consent of the commission thereto; provided, that if the commission shall consent or refuse to consent to any crossing at grade, the corporation or any party aggrieved by the consent or refusal may petition the supreme court for relief in accordance with chapter 5 of this title, and the decision of the court shall be final.

History of Section. G.L. 1896, ch. 187, § 45; P.L. 1899, ch. 658, § 1; C.P.A. 1905, § 1226; G.L. 1909, ch. 215, § 49; G.L. 1923, ch. 251, § 40; G.L. 1938, ch. 124, § 40; G.L. 1956, § 39-8-3 ; P.L. 1973, ch. 199, § 6; P.L. 1984, ch. 81, § 14.

NOTES TO DECISIONS

Branch Road.

Contract for the construction of a branch road was not enforceable where the consent in writing of the commissioner to the contract was not obtained. Social Mfg. Co. v. New York, P. & B. R.R., 19 R.I. 408 , 19 R.I. 409 , 36 A. 1134, 1896 R.I. LEXIS 112 (1896).

Duty to Maintain Flagperson.

Railroad was not negligent in failing to have flagperson at grade crossing of public highway, in compliance with order of city council under § 39-8-9 , where railroad commissioner had not consented to such highway crossing, for in the absence of such consent, railroad was under no duty to maintain flagperson. McGoran v. New York, N. H. & H. R.R., 25 R.I. 387 , 55 A. 929, 1903 R.I. LEXIS 84 (1903).

39-8-4. Obstruction of highway crossings.

No railroad corporation, nor its servants or agents, shall willfully or negligently obstruct or unnecessarily use or occupy a highway, city or town way, or street, nor in any case at a street or highway grade crossing, with cars or engines for more than five (5) minutes at one time; and whenever a highway, city or town way or street has been thus used or occupied with cars or engines, no railroad corporation shall again use or occupy the same with cars or engines until a sufficient time, not less than three (3) minutes, has been allowed for the passage across the railroad of such travelers as were ready and waiting to cross when the former occupation ceased. For every violation of the provisions of this section, the corporation shall be fined not less than twenty-five dollars ($25.00) nor more than one hundred dollars ($100).

History of Section. G.L. 1896, ch. 187, § 51; G.L. 1909, ch. 215, § 55; G.L. 1923, ch. 251, § 46; G.L. 1938, ch. 124, § 46; G.L. 1956, § 39-8-4 .

Collateral References.

Contributory negligence of child injured while climbing over or through railroad train blocking crossing. 11 A.L.R.3d 1168.

Liability of railroad to adult pedestrian attempting to pass over, under or between cars obstructing crossing. 27 A.L.R.2d 369.

Road vehicle running into train or car standing on highway crossing, liability of railroad for injury due to. 84 A.L.R.2d 813.

39-8-4.1. Removal of debris from railroad rights-of-way, switching devices, and railroad yards.

    1. A railroad corporation shall maintain and keep clear of debris in any railroad yard under its supervision or control that is used for storing railroad cars or locomotives, a distance of nine feet (9´) on either side of the center line of any track in any yard. Additionally, every railroad corporation shall maintain and keep clear of debris around any switch under its supervision or control, whether or not located in any such yard, a distance of nine feet (9´) on either side of the center line of any tracks wherein any switch is located, and a distance of nine feet (9´) in any direction from any switching device. The action shall not cause stoppage of through freight or passenger service. Additionally, every railroad corporation shall maintain and keep clear of debris from within the limits of any right-of-way owned by or under the control of the corporation.
    2. For purposes of this section, “debris” means railroad material and equipment, including, but not limited to: brake shoes; air hoses; steel couplers; draw bars and knuckles; broken or fragmented components of railroad cars or locomotives; railroad ties or portions thereof; spilled cargo and their containers, as well as any garbage, discarded bottles, or other containers, wastepaper, or similar refuse that is present on any right-of-way or within the vicinity of any switching device or railroad yard in a quantity that can reasonably be expected to threaten life or health.
    1. Upon the filing by a recognized railroad labor representative, as defined by the Railway Labor Act, 45 U.S.C. § 151 et seq., of a written verified complaint with the public utilities commission, on a form prescribed by the department, designating the nature of the debris and the particular area or location where any of the debris is or has existed for a period of at least seventy-two (72) hours, the public utilities commission shall, ten (10) days after notification to the superintendent of the division responsible for the yard or having jurisdiction over the complained-of area or switch, inspect the yard or switch area within seven (7) days, to ascertain the veracity of the complaint. If, after notice to the railroad corporation, and an opportunity for a hearing conducted in accordance with the provisions of this title, the public utilities commission determines the validity of the complaint, it shall issue orders within twenty-four (24) hours, to the superintendent of the division responsible for the yard or having jurisdiction over the complained-of area or switch listed in the complaint, directing the debris to be cleared within a reasonable period of time and in such manner as prescribed in the order. Failure to remove or clear the debris shall permit the public utilities commission to issue orders to the designated railroad official in charge of the yard or having jurisdiction over the complained-of area or switch to take the track or tracks or switch out of service until the orders have been complied with by the railroad corporation; provided the action shall not affect freight or passenger service, or in the alternative, assess a penalty not to exceed one hundred dollars ($100) per day until the order is complied with.
    2. Additionally, the public utilities commission, upon having reasonable cause to believe that a railroad corporation that owns or controls a right-of-way in this state is not complying with the provisions of subsection (a) of this section with respect to rights-of-way, shall conduct an investigation to determine whether a dangerous or unhealthy condition exists on an affected right-of-way. If the public utilities commission determines that a dangerous or unhealthy condition exists on an affected right-of-way, the commission shall send notice, by certified mail, to the local agent of the railroad corporation describing the condition and location of the right-of-way. The railroad company shall correct the condition not later than ten (10) days from the date the notice was mailed, otherwise the public utilities commission shall assess a penalty not to exceed one hundred dollars ($100) per day until the condition is rectified.
  1. The public utilities commission may adopt regulations in accordance with the provisions of this title to carry out the provisions of this section.

History of Section. P.L. 1988, ch. 565, § 1.

39-8-5. Railroads on highways subject to prescribed terms.

All railroads upon any street or highway in any town or city in this state shall be laid out, constructed, used, and continued therein under the terms and conditions named in §§ 39-8-6 39-8-8 .

History of Section. G.L. 1896, ch. 187, § 19; G.L. 1909, ch. 215, § 23; G.L. 1923, ch. 251, § 14; G.L. 1938, ch. 124, § 14; G.L. 1956, § 39-8-5 .

39-8-6. Operation of grade crossings of railroads.

All railroads in this state crossing any other railroad at grade shall be operated at the crossing subject to, and in accordance with, such reasonable rules and regulations as the division of public utilities and carriers shall from time to time prescribe.

History of Section. G.L. 1896, ch. 187, § 16; G.L. 1909, ch. 215, § 20; G.L. 1923, ch. 251, § 11; G. L. 1938, ch. 124, § 11; G.L. 1956, § 39-8-6 .

Collateral References.

Contributory negligence of child injured while climbing over or through railroad train blocking crossing. 11 A.L.R.3d 1168.

39-8-7. Town or city regulation of speed and manner of operation.

The town and city councils of the several towns and cities shall have power, from time to time, to make reasonable rules and regulations with reference to the rate of speed and mode of operation of railroads in the streets and highways of the respective towns and cities; the rules and regulations must receive the approval in writing of the division of public utilities and carriers.

History of Section. G.L. 1896, ch. 187, § 17; G.L. 1909, ch. 215, § 21; G.L. 1923, ch. 251, § 12; G.L. 1938, ch. 124, § 12; G.L. 1956, § 39-8-7 .

Collateral References.

Duty to run train at speed that will not prevent its being stopped within the distance covered by its own lights. 29 A.L.R. 1049.

Speed of train, locomotive, or railway car at crossing, as negligence. 154 A.L.R. 212.

39-8-8. Maintenance of highways occupied by rails.

Every corporation that maintains or uses railroad tracks in any street or highway in any town or city in this state, shall be liable to keep and maintain in good order and repair, including paving and repaving whenever and wherever necessary, that portion of any street or highway occupied by its railroad and eighteen inches (18") outside of any of its rails, in order that the streets and highways may be safe and convenient for travelers with their vehicles at all times, and the extent of the liability shall not be varied; provided, however, that the character of the paving, repaving, and repairing, shall be such as is from time to time fixed by the town or city councils of the respective towns and cities; and provided, further, that nothing in this section shall relieve any railroad corporation from the payment of any sum of money that it is now required by law to pay to any town or city for the use and occupancy of the streets and highways in the town or city.

History of Section. G.L. 1896, ch. 187, § 18; G.L. 1909, ch. 215, § 22; G.L. 1923, ch. 251, § 13; G.L. 1938, ch. 124, § 13; G.L. 1956, § 39-8-8 ; P.L. 1997, ch. 326, § 110.

NOTES TO DECISIONS

Maintenance of Bridge.

Where a railroad maintained a bridge for a public highway over its tracks, this section required a street railway which ran its cars over the bridge to maintain that portion of the bridge occupied by its rails and 18 inches on each side. United E. Ry. v. Cranston, 46 R.I. 425 , 128 A. 213, 1925 R.I. LEXIS 21 (1925).

Obligation of City to Pave.

Provision requiring street railway to pave portion of street occupied by rails and 18 inches outside of its rails did not invalidate a contract by a city for paving of highway with exception of four inches inside tracks and eight inches outside of the tracks, since the city was obligated in the first instance to do all of the paving and repair on highways. Warren Bros. Co. v. Taylor, 29 R.I. 96 , 69 A. 303, 1908 R.I. LEXIS 23 (1908).

39-8-9. Order to maintain flagperson or precautionary appliance at grade crossing.

Every railroad corporation or lessees, receivers, or trustees of the corporation operating railroads within this state shall cause flagpersons or gates or other precautionary measures or appliances to be established or substituted wherever the railroads cross public highways, whenever and as often as in the opinion of the commission it is necessary for the safety of the public.

History of Section. G.L. 1896, ch. 187, § 47; P.L. 1899, ch. 701, § 1; P.L. 1900, ch. 784, § 1; C.P.A. 1905, § 1130; G.L. 1909, ch. 215, § 51; G.L. 1923, ch. 251, § 42; G.L. 1938, ch. 124, § 42; impl. am. P.L. 1949, ch. 2174, § 1; G.L. 1956, § 39-8-9 ; P.L. 1969, ch. 240, § 11.

Cross References.

Traffic regulations at crossings, § 31-20-1 et seq.

NOTES TO DECISIONS

Duty to Maintain Flagperson.

Railroad was not negligent in failing to have flagperson at grade crossing of public highway, in compliance with order of city council where railroad commissioner had not consented to such highway crossing, for in the absence of such consent, railroad was under no duty to maintain flagperson. McGoran v. New York, N. H. & H. R.R., 25 R.I. 387 , 55 A. 929, 1903 R.I. LEXIS 84 (1903).

Hours Flagperson Required.

Where a town council orders that a railroad furnish a flagperson for a particular public highway crossing without defining the hours that such flagperson will be required to be present, the railroad is required to keep a watchperson at the crossing at all times. Wilson v. New York, N. H. & H. R.R., 18 R.I. 598 , 29 A. 300, 1894 R.I. LEXIS 35 (1894).

Collateral References.

Contributory negligence of child injured while climbing over or through railroad train blocking crossing. 11 A.L.R.3d 1168.

Flagperson at crossing, duty to maintain. 24 A.L.R.2d 1161.

39-8-10. Failure to maintain flagperson or precautionary appliances.

Every railroad corporation that shall refuse or neglect to comply with an order, or with a confirmation of such order upon appeal, shall, for every day’s neglect after seven (7) days from the date of the service of the order upon the president, treasurer, or any director of the corporation, forfeit five hundred dollars ($500), one-half (1/2) thereof to the use of the state, and one-half (1/2) thereof to the use of the city or town where the crossing is located.

History of Section. G.L. 1896, ch. 187, § 48; P.L. 1899, ch. 701, § 2; G.L. 1909, ch. 215, § 52; G.L. 1923, ch. 251, § 43; G.L. 1938, ch. 124, § 43; G.L. 1956, § 39-8-10 .

Collateral References.

Automatic signaling device at crossing, failure of, to operate as affecting liability of railroad for injury. 90 A.L.R.2d 350.

Contributory negligence of child injured while climbing over or through railroad train blocking crossing. 11 A.L.R.3d 1168.

Flagperson at crossing, negligence of railroad company in respect to maintaining. 16 A.L.R. 1273; 71 A.L.R. 1160; 24 A.L.R.2d 1161.

39-8-11. Order to maintain electric signals at crossing.

At any point where a highway, city or town way, or traveled place is crossed at the same level by a railroad where a gate or flagperson is not maintained, the commission may, after notice to and hearing of the railroad corporation whose road so crosses, direct that the crossing shall be furnished with electric signal or signals as they shall decide the better security of human life or the convenience of the public travel requires, and the corporation shall comply with the order. If the railroad corporation shall refuse or neglect to comply with the order within three (3) months from the date thereof, it shall be fined twenty-five dollars ($25.00) for each day that the refusal or neglect shall continue unless it shall furnish reasons satisfactory to the commission for the refusal or neglect. Nothing in this section shall be so construed as to affect §§ 39-8-9 and 39-8-10 .

History of Section. G.L. 1896, ch. 187, § 52; G.L. 1909, ch. 215, § 56; G.L. 1923, ch. 251, § 47; G.L. 1938, ch. 124, § 47; G.L. 1956, § 39-8-11 ; P.L. 1973, ch. 199, § 6.

Collateral References.

Contributory negligence of child injured while climbing over or through railroad train blocking crossing. 11 A.L.R.3d 1168.

39-8-12. Municipal order to maintain crossing gates or fence.

Every railroad corporation whose railroad crosses any street or highway at grade in the city of Providence shall erect, maintain, and cause to be operated gates across every street or highway satisfactory in all respects to the city council upon receiving notice from the city council, and shall also fence its line of track within the limits of the city in such manner and at such places as the city council may direct. Any railroad corporation violating any of the provisions of this section shall, for every day’s neglect after twenty (20) days from notice or direction to the president, treasurer, or any director of the corporation from the city council as aforesaid to comply with the provisions of this section or with the order or direction of the city council, be fined fifty dollars ($50.00), one-half (1/2) thereof to the use of the state and the other one-half (1/2) to the use of the complainant.

History of Section. G.L. 1896, ch. 187, § 46; G.L. 1909, ch. 215, § 50; G.L. 1923, ch. 251, § 41; G.L. 1938, ch. 124, § 41; G.L. 1956, § 39-8-12 .

Cross References.

Review of ordinances by division of public utilities and carriers, § 39-4-18 .

Collateral References.

Contributory negligence of child injured while climbing over or through railroad train blocking crossing. 11 A.L.R.3d 1168.

39-8-13. Erection of warning signs along highway.

Every railroad corporation shall cause to be erected and to be maintained at every turnpike, highway, or public way, where it is crossed by the railroad upon the same level therewith, a suitable sign board upon each side of the crossing; and on each side of the sign boards shall be painted in black capital letters of at least the length of nine inches (9") such words or phrases as may, in the opinion of the division of public utilities and carriers, constitute a proper warning to both pedestrian and vehicular traffic using the crossing. The sign board shall be of such design as may be ordered by the division and shall be placed under the direction and with the consent of the division. The sign board shall indicate whether the railroad crossing is a public or private crossing. Every railroad corporation shall also adopt such other precautionary measures at such grade crossings as shall be deemed proper by the division.

History of Section. G.L. 1896, ch. 187, § 12; G.L. 1909, ch. 215, § 15; G.L. 1923, ch. 251, § 6; G.L. 1938, ch. 124, § 6; G.L. 1956, § 39-8-13 ; P.L. 1969, ch. 240, § 11.

NOTES TO DECISIONS

Evidence Sufficient for Verdict.

Evidence of railroad’s negligence in failing to erect warning signals was sufficient for the jury to award a verdict to injured automobile driver. Murphy v. Palmer, 73 R.I. 182 , 54 A.2d 427, 1947 R.I. LEXIS 84 (1947).

Track Across One Lane Only.

The erection of a spur track across the entire southbound traffic lane but not across the entire street constituted a “railroad crossing” requiring the erection of a signboard. Murphy v. Palmer, 73 R.I. 182 , 54 A.2d 427, 1947 R.I. LEXIS 84 (1947).

Collateral References.

Contributory negligence of child injured while climbing over or through railroad train blocking crossing. 11 A.L.R.3d 1168.

39-8-14. Warning bells.

Every railroad corporation shall cause a bell of at least thirty-two pounds (32 lbs.) in weight to be placed on each locomotive engine passing upon its road, and the bell shall be rung at a distance of at least eighty (80) rods from the place where the railroad crosses any turnpike, highway, or public way upon the same grade with the railroad, and shall be kept ringing until the engine has crossed the turnpike or road. No car or carriage for the transportation of passengers or freight over any railroad in this state shall be propelled across any highway, after the locomotive has been detached therefrom, unless a bell is rung or a whistle sounded at the crossing during the whole time the train is crossing the highway.

History of Section. G.L. 1896, ch. 187, § 11; G.L. 1909, ch. 215, § 14; G.L. 1923, ch. 251, § 5; G.L. 1938, ch. 124, § 5; G.L. 1956, § 39-8-14 .

NOTES TO DECISIONS

Public Way.

If the public has the right to use the way and exercises that right, even though it is neither dedicated as a highway nor maintained as such at public expense, it may nevertheless be properly deemed a public way as distinguished from a private way. Lemieux v. Leonard Constr. Co., 73 R.I. 338 , 56 A.2d 189, 1947 R.I. LEXIS 95 (1947).

Whether a private lane crossing a railroad and which was used by the public was public within the meaning of the requirements of this section was properly left to the jury. Sanderson v. New York, N. H. & H. R.R., 87 R.I. 393 , 142 A.2d 124, 1958 R.I. LEXIS 69 (1958).

Collateral References.

Customary or statutory signals from train as measure of railroad’s duty as to warning at highway crossing. 5 A.L.R.2d 112.

39-8-15. Failure to erect signs or ring bell.

Every railroad corporation that shall neglect or refuse to comply with the provisions of §§ 39-8-13 and 39-8-14 shall be fined not exceeding one thousand dollars ($1,000); and the corporation shall be liable for all damages sustained by any person by reason of neglect or refusal on the part of the corporation.

History of Section. G.L. 1896, ch. 187, § 13; G.L. 1909, ch. 215, § 16; G.L. 1923, ch. 251, § 7; G.L. 1938, ch. 124, § 7; G.L. 1956, § 39-8-15 .

NOTES TO DECISIONS

Contributory Negligence.

The question of contributory negligence is not eliminated by this section, and where a person is palpably guilty of contributory negligence, she cannot as a matter of law recover regardless of whether the statutory signals were given. Kennedy v. New York, N. H. & H. R.R., 43 R.I. 358 , 112 A. 429, 1921 R.I. LEXIS 91 (1921).

Persons to Be Benefited.

The action given by this section is for the benefit of persons crossing a railroad track which is on the level of a public highway and cannot be availed of by a person who is injured while walking along the railroad tracks not at a crossing. O'Donnell v. Providence & W. R.R., 6 R.I. 211 , 1859 R.I. LEXIS 29 (1859).

Collateral References.

Contributory negligence of child injured while climbing over or through railroad train blocking crossing. 11 A.L.R.3d 1168.

39-8-16. Closing of gates at private way.

Whoever enters upon or crosses a railroad at any private way that is closed by gates or bars and neglects to close them securely, shall be fined not less than two dollars ($2.00) nor more than ten dollars ($10.00) and shall be liable for the damage sustained therefrom.

History of Section. G.L. 1896, ch. 187, § 28; G.L. 1909, ch. 215, § 32; G.L. 1923, ch. 251, § 23; G.L. 1938, ch. 124, § 23; G.L. 1956, § 39-8-16 .

39-8-17. Bail to certain railroad employees.

Whenever a person employed as an engineer, fireperson, conductor, brake person, flagperson, or other crew member, is arrested in any city or town on a criminal charge arising from an accident in connection with the operation of a train, resulting in an injury or death to a person or injury to property, and if as a result of the accident the engineer, fireperson, conductor, brake person, flagperson, or other crew member is required to submit to a hearing before any magistrate, judge, or clerk of court, wherein the engineer, fireperson, conductor, brake person, flagperson, or other crew member is required to furnish bail, then it shall be the obligation and responsibility of the employer of the engineer, fireperson, conductor, brake person, flagperson, or other crew member to furnish bail, and if the employer fails to furnish bail so that the employee as aforesaid is required to furnish bail at his or her own expense, then in that event the employer shall be liable to the employee for all costs incurred in obtaining bail, together with and including counsel fees.

History of Section. P.L. 1966, ch. 98, § 1.

39-8-18. Fences along right of way.

Every railroad corporation or company shall erect and thereafter maintain a fence or fences along the boundary lines of its rights of way that are actually used for rail transportation of any kind whenever the public utilities commission shall determine it to be necessary for the public safety and welfare. The commissioner may prescribe the height, length, materials, and design of the fence or fences.

History of Section. P.L. 1989, ch. 129, § 1.

Collateral References.

Validity of statutes requiring the construction of fences — modern cases. 87 A.L.R.4th 1129.

Chapter 9 Railroad Rates and Service

39-9-1. Reasonable facilities and accommodations required.

Every railroad corporation doing business or owning any railroad, wholly or in part within the limits of this state, shall furnish reasonable and proper facilities and accommodations on the line of its road, within its limits, for the transportation of passengers and merchandise.

History of Section. G.L. 1896, ch. 187, § 8; G.L. 1909, ch. 215, § 11; G.L. 1923, ch. 251, § 2; G.L. 1938, ch. 124, § 2; G.L. 1956, § 39-9-1 .

Cross References.

Functions of department of business regulation, § 42-14-2 .

Comparative Legislation.

Rates and service:

Mass. Ann. Laws ch. 159, § 13 et seq.; ch. 160, § 128A et seq., 186 et seq.

Collateral References.

Carrier’s duty and liability to its passenger injured on platform or the like of a station or terminal owned by another company. 41 A.L.R.2d 1286.

Duty and liability of carrier with respect to allowing passenger sufficient time for change of vehicles. 40 A.L.R.2d 809.

39-9-2. Abandonment of stations — Seasonal stations.

No railroad corporation shall abandon any railroad station that is on its road and in this state after the station has been established for twelve (12) months, except by permission of the commission; but the corporation may establish stations to be used only during certain months of each year, and for such trains, as they may designate by notice put up and maintained in some conspicuous place at the stations so established, specifying the months during which the station will be used.

History of Section. G.L. 1896, ch. 187, § 29; P.L. 1900, ch. 741, § 1; G.L. 1909, ch. 215, § 33; G.L. 1923, ch. 251, § 24; G.L. 1938, ch. 124, § 24; G.L. 1956, § 39-9-2 ; P.L. 1973, ch. 199, § 7; P.L. 2020, ch. 79, art. 1, § 5.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

Collateral References.

Carrier’s right to discontinue its entire service. 11 A.L.R. 252.

Changed conditions as affecting duty, or enforcement of duty, as to train service imposed upon railroad by charter or statute. 111 A.L.R. 57.

Court’s power to authorize discontinuation of railroad upon foreclosing a mortgage upon its plant. 8 A.L.R. 238.

Covenant for location and maintenance of depot, period covered by. 7 A.L.R. 818.

Motor bus service, when grant or refusal of permission to substitute for rail service justified. 75 A.L.R. 241.

Right of damages because of abandonment or relocation of railway line, depot, station, or sidetrack. 23 A.L.R. 555.

Right of public utility to discontinue line or branch on ground that it is unprofitable. 10 A.L.R.2d 1121.

Right of railroad company to discontinue or reduce service on branch line or part of road which is unprofitable. 123 A.L.R. 922.

Suspension of service temporarily, duty to notify patron in advance of. 52 A.L.R. 1079.

39-9-3. Railroads as common carriers — Articles transported by connecting lines.

Every railroad corporation shall be deemed a common carrier; and whenever two (2) or more railroads are connected within this state, the corporation running either of the railroads shall receive articles for transportation to any place on the line of either of the railroads so connected, and shall be liable as common carriers for the delivery of articles at the place. If any corporation shall become liable to pay any sum by reason of the neglect or misconduct of any other corporation, the corporation paying the sum may collect the sum of the corporation by reason of whose neglect or misconduct it became so liable.

History of Section. G.L. 1896, ch. 187, § 33; G.L. 1909, ch. 215, § 37; G.L. 1923, ch. 251, § 28; G.L. 1938, ch. 124, § 28; G.L. 1956, § 39-9-3 .

Cross References.

Bills of lading, § 6A-7-102 et seq.

Collateral References.

Deviation by carrier in transportation of property. 33 A.L.R.2d 145.

39-9-4. Charges for transfer of shipments to connecting line.

Whenever merchandise is transported over any portion of two (2) railroads that form a connecting line, and the tracks of which so unite that cars can pass from one to another, no charge shall be made for the loading or unloading or for the carriage of the merchandise from the cars of one of the railroads to the cars of the other.

History of Section. G.L. 1896, ch. 187, § 30; G.L. 1909, ch. 215, § 34; G.L. 1923, ch. 251, § 25; G.L. 1938, ch. 124, § 25; G.L. 1956, § 39-9-4 .

39-9-5. Services and facilities provided to other railroads.

Every railroad corporation owning a road in use, operated by steam power, shall, at reasonable times and for a reasonable compensation, draw over the same the passengers, merchandise, and cars of any other railroad corporation that connects with, or may be authorized by the legislature to enter with its road upon, or connect the same with and use, the road of the first named corporation; and shall also provide upon its road convenient and suitable depot accommodations for the passengers and merchandise of the other road passing to and over it, and shall receive and deliver the same in the manner it receives and delivers its own passengers and freight.

History of Section. G.L. 1896, ch. 187, § 31; G.L. 1909, ch. 215, § 35; G.L. 1923, ch. 251, § 26; G.L. 1938, ch. 124, § 26; G.L. 1956, § 39-9-5 .

Collateral References.

Power to require railroads to permit use of tracks in street by other companies. 28 A.L.R. 969.

39-9-6. Determination of terms for services and facilities to other railroads.

If the corporations cannot agree upon the stated periods at which the cars shall be so drawn, and the compensation to be paid therefor, or cannot agree upon the terms and conditions upon which accommodations shall be furnished for passengers and merchandise, the supreme court, upon application by either party, shall appoint three (3) commissioners, who, after due notice to and hearing the parties interested, shall determine, having reference to the convenience and interest of the corporations and of the public to be accommodated thereby, the stated periods for drawing cars, and compensation therefor, or the terms and conditions for passengers and merchandise, or the requisite terminal accommodations and manner of transferring passengers and freight, as aforesaid; and upon the application of either party, shall determine all questions between them in relation to the transportation of freight and passengers and other business upon and connected with the roads in which they are jointly interested, and the manner in which the business shall be done; and shall apportion to the corporations their respective shares of the expenses, receipts, and income of the same; and the award of the commissioners or a majority of them, when approved by the court, shall be binding upon the respective corporations interested therein for one year and until commissioners appointed in like manner, upon application of either party, shall revise and alter the award.

History of Section. G.L. 1896, ch. 187, § 31; C.P.A. 1905, § 1226; G.L. 1909, ch. 215, § 35; G.L. 1923, ch. 251, § 26; G.L. 1938, ch. 124, § 26; G.L. 1956, § 39-9-6 .

39-9-7. Award of commissioners to determine terms of services and facilities.

The compensation of the commissioners for services and expenses under § 39-9-6 shall be paid by the respective corporations in proportions as the commissioners shall determine and set forth as a part of their award; the award shall be returned to the court, and be subject to revision in all matters of law arising thereon, and the court may, by injunction or other suitable order, compel the performance of any final order of the commissioners, or of the court, under the provisions of § 39-9-6 .

History of Section. G.L. 1896, ch. 187, § 32; C.P.A. 1905, § 1129; G.L. 1909, ch. 215, § 36; G.L. 1923, ch. 251, § 27; G.L. 1938, ch. 124, § 27; G.L. 1956, § 39-9-7 .

39-9-8. Tariffs for transportation of milk.

No railroad corporation shall contract to furnish facilities for the transportation of milk, or shall carry it in large quantities over any portion of its line, without at the same time establishing a tariff under which it will receive, forward, and deliver milk by the can over the same portion of its line for any person tendering the same, so that the milk by the can shall be carried under fairly proportionate advantages in every respect, including price, time, and reasonable care for the same, as the milk carried in large quantities or under contract.

History of Section. G.L. 1896, ch. 187, § 35; G.L. 1909, ch. 215, § 39; G.L. 1923, ch. 251, § 30; G.L. 1938, ch. 124, § 30; G.L. 1956, § 39-9-8 .

39-9-9. Fixing of rates for milk.

On the petition of a person desiring to forward milk over a railroad, the division of public utilities and carriers shall ascertain at what rate facilities for carriage of milk under contract or in large quantities are furnished by the railroad corporation, and shall compare the rate with the tariff for the carriage of milk by the can from and to the same places, including a reasonable compensation for the care of milk by the can; and if the tariff for care and carriage by the can is unreasonably more than the rate for its carriage under contract or in large quantities, the division of public utilities and carriers shall revise the tariff and fix rates therefor fairly proportionate with the contract or large quantity rates, and shall notify the corporation of the revision.

History of Section. G.L. 1896, ch. 187, § 36; G.L. 1909, ch. 215, § 40; G.L. 1923, ch. 251, § 31; G.L. 1938, ch. 124, § 31; G.L. 1956, § 39-9-9 .

39-9-10. Forfeiture for failure to observe established rates for milk.

A corporation that refuses or neglects to receive, forward, or deliver milk by the can at the tariff rates so fixed and notified to it by the division of public utilities and carriers, shall forfeit to the person tendering the same ten dollars ($10.00) for each and every can it so refuses to receive or neglects to forward or deliver, to be recovered in action of tort.

History of Section. G.L. 1896, ch. 187, § 37; G.L. 1909, ch. 215, § 41; G.L. 1923, ch. 251, § 32; G.L. 1938, ch. 124, § 32; G.L. 1956, § 39-9-10 .

39-9-11. Baggage of passengers.

Every passenger upon a railroad within the limits of this state shall have the privilege of taking with him or her upon any train, on which he or she is a passenger, personal baggage not exceeding eighty pounds (80 lbs.) in weight, without any charge on the part of the railroad company transporting the baggage, except the railroad fare of the passenger; and bicycles are hereby declared to be, and are decreed to be baggage, within the meaning of this section, and shall be by the railroad companies transported as baggage, subject to the same liabilities; provided, however, that no railroad company shall be required to transport more than one bicycle for a single person, and no passenger shall be required to crate, cover, or otherwise protect any bicycle.

History of Section. G.L. 1896, ch. 187, § 9; P.L. 1896, ch. 345, § 1; G.L. 1909, ch. 215, § 12; G.L. 1923, ch. 251, § 3; G.L. 1938, ch. 124, § 3; G.L. 1956, § 39-9-11 .

Collateral References.

Liability of bank or safe-deposit company for its employee’s theft or misappropriation of contents of safe-deposit box. 39 A.L.R.4th 543.

Loss or theft of baggage or effects accompanying passenger, railroad carrier’s liability for. 32 A.L.R.2d 630.

39-9-12. Certificates for excess fare paid on train.

Every railroad corporation carrying passengers in cars propelled by steam, which shall collect in the cars a greater fare than the price for which a single passage ticket is sold from the station at which the passenger takes the train, shall issue to the passenger a certificate for such sum as the fare collected on the train exceeds the sum for which a single passage ticket for the same distance is sold at the ticket office of the company, which certificate shall be payable upon presentation at any ticket office of the corporation; and every railroad corporation that shall neglect or refuse to comply with the provisions of this section shall be fined not less than fifty dollars ($50.00) nor more than five hundred dollars ($500) for each offense, one-half (1/2) to the use of the complainant and one-half (1/2) thereof to the use of the state.

History of Section. G.L. 1896, ch. 187, § 42; G.L. 1909, ch. 215, § 46; G.L. 1923, ch. 251, § 37; G.L. 1938, ch. 124, § 37; G.L. 1956, § 39-9-12 .

Cross References.

Evasion of payment of fare, penalty, § 11-36-10 .

Profiteering on tickets, penalty, § 11-36-12 .

Stealing of railroad ticket as larceny, § 11-41-1 .

Collateral References.

Excess fare for passenger not purchasing ticket. 48 A.L.R. 330.

Liability of carrier for overcharging passenger. 56 A.L.R. 771.

39-9-13. Accounts of revenues.

Every railroad corporation shall keep an account of the toll, freight, and passage money received at their depots and offices of receipt, and keep the same at all times in readiness for the examination of the general assembly, or the division of public utilities and carriers, or any committee that may be appointed by the general assembly.

History of Section. G.L. 1896, ch. 187, § 38; G.L. 1909, ch. 215, § 42; G.L. 1923, ch. 251, § 33; G.L. 1938, ch. 124, § 33; G.L. 1956, § 39-9-13 .

Chapter 10 Attorney for Receipt of Process

39-10-1. Corporations required to comply with chapter.

No corporation unless incorporated by the general assembly, and no person or partnership unless the person or partnership or the members of the partnership are residents of this state, shall transport or engage in the transportation of any goods, wares, merchandise, or parcels of any description within this state until the corporation, person, or partnership shall have complied with the provisions of this chapter.

History of Section. G.L. 1896, ch. 160, § 1; G.L. 1909, ch. 189, § 1; G.L. 1923, ch. 217, § 1; G.L. 1938, ch. 391, § 1; G.L. 1956, § 39-10-1 .

Cross References.

Alcoholic beverages, transportation in violation of law, § 3-4-6 .

Public service corporation tax, § 44-13-1 et seq.

Stoppage of goods in transit, §§ 6A-2-702 et seq., 6A-7-504 .

Comparative Legislation.

Regulation of express business:

Mass. Ann. Laws ch. 159, §§ 5-7, 12(a), 33.

39-10-2. Appointment of attorney to receive process and appear.

Every corporation, person, or partnership shall by a written power appoint some citizen of this state, resident therein, as attorney, with power and authority to accept service of all lawful process against the corporation, person, or partnership, and to cause an appearance to be entered in like manner as if the corporation had existed or the person or the members of the partnership had been residents of and been duly served with process within the state.

History of Section. G.L. 1896, ch. 160, § 2; G.L. 1909, ch. 189, § 2; G.L. 1923, ch. 217, § 2; G.L. 1938, ch. 391, § 2; G.L. 1956, § 39-10-2 .

39-10-3. Filing of power of attorney — Receipt in evidence.

A copy of a power of attorney duly certified and authenticated shall be filed with the secretary of state, and copies thereof duly certified shall be received in evidence in all courts in the state.

History of Section. G.L. 1896, ch. 160, § 3; G.L. 1909, ch. 189, § 3; G.L. 1923, ch. 217, § 3; G.L. 1938, ch. 391, § 3; G.L. 1956, § 39-10-3 .

39-10-4. Replacement of attorney on termination of power.

If the attorney shall die or resign or be removed, the corporation, individual, or partnership shall make a new appointment, as provided in § 39-10-2 , and file a copy with the secretary of state as provided in § 39-10-3 , so that at all times there shall be within the state an attorney authorized as provided in § 39-10-2 ; and no power of attorney shall be revoked until after like power shall have been given to some competent person and a copy thereof filed as provided in § 39-10-3 .

History of Section. G.L. 1896, ch. 160, § 4; G.L. 1909, ch. 189, § 4; G.L. 1923, ch. 217, § 4; G.L. 1938, ch. 391, § 4; G.L. 1956, § 39-10-4 ; P.L. 1997, ch. 326, § 111.

39-10-5. Service on attorney.

Service of process upon an attorney shall be deemed sufficient service upon his or her principals.

History of Section. G.L. 1896, ch. 160, § 5; G.L. 1909, ch. 189, § 5; G.L. 1923, ch. 217, § 5; G.L. 1938, ch. 391, § 5; G.L. 1956, § 39-10-5 .

39-10-6. Corporation charter or list of partners filed.

Every corporation or partnership shall file in the office of the secretary of state, with the written power described in § 39-10-2 , a copy of the charter of the corporation or a list of the names and the places of residence of all the members of the co-partnership.

History of Section. G.L. 1896, ch. 160, § 6; G.L. 1909, ch. 189, § 6; G.L. 1923, ch. 217, § 6; G.L. 1938, ch. 391, § 6; G.L. 1956, § 39-10-6 ; P.L. 1997, ch. 326, § 111.

39-10-7. Penalty for violations.

Every person, corporation, or co-partnership violating any of the provisions of this chapter shall forfeit five hundred dollars ($500).

History of Section. G.L. 1896, ch. 160, § 7; G.L. 1909, ch. 189, § 7; G.L. 1923, ch. 217, § 7; G.L. 1938, ch. 391, § 7; G.L. 1956, § 39-10-7 .

Chapter 11 Air Carriers

39-11-1. Definitions.

Whenever used in this chapter:

  1. “Airports and landing fields” means all airports and landing fields other than those owned by the state.
  2. “Charter carrier” means and includes all carriers for hire or compensation by air within this state not included in the definition of the term common carrier.
  3. “Common carrier” means and includes all carriers for hire or compensation by air that operate, or seek to operate, over fixed routes or between fixed termini within the state.
  4. “Person” means and includes any individual, co-partnership, association, corporation, or other form of organization and their lessees, trustees, or receivers, appointed by any court.

History of Section. P.L. 1944, ch. 1500, § 1; G.L. 1956, § 39-11-1 .

Comparative Legislation.

Regulation of air carriers:

Conn. Gen. Stat. § 15-34 et seq.

Mass. Ann. Laws ch. 90, § 35 et seq.

Collateral References.

Aircraft, one carrying passengers by as a common carrier. 59 A.L.R. 316; 83 A.L.R. 354; 99 A.L.R. 188.

39-11-2. Purpose.

It is hereby declared to be the purpose and policy of the legislature in enacting this chapter, to confer upon the public utilities administrator the power and authority and to make it his or her duty to supervise and regulate the transportation of persons and property by intrastate aircraft through the air between termini located within this state.

History of Section. P.L. 1944, ch. 1500, § 2; G.L. 1956, § 39-11-2 .

39-11-3. Operations requiring certificate of convenience and necessity.

Any person seeking to engage in the operation, or to extend a present operation, as an intrastate common carrier of persons or property by aircraft, shall first obtain a certificate of convenience and necessity from the public utilities administrator in accordance with the provisions of this chapter.

History of Section. P.L. 1944, ch. 1500, § 3; G.L. 1956, § 39-11-3 .

Cross References.

Motor fuel tax refunds, § 31-36-15 .

Operation of aircraft by railroads, § 39-6-15 .

Collateral References.

Requiring certificate of public convenience and necessity for air lines. 69 A.L.R. 316; 83 A.L.R. 338; 99 A.L.R. 178.

39-11-4. Transportation of mail.

No certificate shall be required for the transportation of United States mail.

History of Section. P.L. 1944, ch. 1500, § 6; G.L. 1956, § 39-11-4 .

39-11-5. Application for certificate — Fee.

Application for a certificate shall be in writing and shall contain such information as the administrator may require. All applications for a certificate shall be in the form prescribed by the administrator and shall be accompanied by a filing fee of twenty dollars ($20.00).

History of Section. P.L. 1944, ch. 1500, § 4; G.L. 1956, § 39-11-5 ; P.L. 1960, ch. 71, art. 3, § 31.

39-11-6. Hearings on certificate.

Upon the filing of an application for a certificate, the administrator shall fix a time and place for the hearing on the application and shall cause notice of the filing of the application and of the hearing on the application to be given by mail not less than ten (10) days, exclusive of the date of mailing, before the hearing, addressed to all holders of certificates, and applicants therefor whose operations or proposed operations would be affected by the granting of the proposed certificate, and upon any other person deemed by the administrator to have an interest in the proceeding. All interested persons shall have the right to appear and take part in all proceedings before the administrator either in person or by counsel. All hearings, investigations, and inquiries before the administrator shall be governed by rules to be adopted and prescribed by the administrator, and in the hearings and investigations and inquiries, the administrator shall not be bound by the technical rules of evidence.

History of Section. P.L. 1944, ch. 1500, § 5; G.L. 1956, § 39-11-6 .

39-11-7. Duty to hear interested parties — Evidence as to other forms of transportation.

The public utilities administrator is hereby authorized and empowered, and it is hereby made his or her duty, upon the filing of an application for a certificate of public convenience and necessity in accordance with the provisions of this chapter, to hear all interested parties. The administrator shall not receive or consider evidence with respect to other forms of transportation, or the service, or facilities thereof, nor shall the administrator consider such factors in determining whether public convenience and necessity requires the proposed operations.

History of Section. P.L. 1944, ch. 1500, § 6; G.L. 1956, § 39-11-7 .

39-11-8. Issuance of certificate — Proof required.

The administrator may issue a certificate granting the application in whole or in part and may impose such terms and conditions as he or she may deem proper in the public interest. The applicant for the certificate shall be entitled to the certificate only upon showing by competent evidence that the public convenience and necessity requires the proposed service or operation and that the applicant is fit, willing, and able to provide the service proposed and found to be required.

History of Section. P.L. 1944, ch. 1500, § 6; G.L. 1956, § 39-11-8 .

39-11-9. Service of orders — Rehearing.

Orders of the administrator shall be served upon all parties to the respective proceedings and shall become effective thirty (30) days after the service. Any of the parties to any hearing before the administrator may, upon proper petition, be granted a rehearing. The administrator shall prescribe rules and regulations governing the rehearing. If any rehearing is granted within thirty (30) days after the issuance of an order, then the order shall not become effective until thirty (30) days after the determination of the administrator following the rehearing proceedings.

History of Section. P.L. 1944, ch. 1500, § 6; G.L. 1956, § 39-11-9 .

39-11-10. Continuation of certificate — Transfer — Rights conferred.

All certificates issued by the administrator shall continue in force and effect until surrendered or revoked for cause. No certificate may be transferred except upon proper application and hearing, and upon a finding by the administrator that the transfer is consistent with the public interest. No certificate shall confer any proprietary, property, or exclusive rights in the use of any airspace, airport, or other air navigation facility.

History of Section. P.L. 1944, ch. 1500, § 6; G.L. 1956, § 39-11-10 .

Collateral References.

Carrier’s certificate of convenience and necessity, franchise, or permit as subject to transfer or encumbrance. 15 A.L.R.2d 883.

39-11-11. Rates, fares, and charges.

All common carriers subject to this chapter shall, before engaging in business, file with the administrator and keep open to public inspection at its offices and terminals schedules showing all rates, fares, and charges for transportation of passengers, or property, between different points on its route or routes, and also between points on its own route and on the routes of other common carriers, when a through route and joint rate have been established. No intrastate aircraft common carrier shall accept or receive any person or property for transportation until the requirements of this chapter have been complied with, and no carrier shall charge, demand, collect, or receive a greater or less or different remuneration therewith than the rates, fares, and charges that have been legally established and filed with the administrator; nor shall any carrier refund or remit in any manner or by any device any portion of the rates, fares, and charges so established. The administrator is vested with the power and authority to supervise, regulate, and fix, alter, and determine just, fair, reasonable, and sufficient rates, fares, charges, and classifications. No order of the administrator affecting rates, fares, and charges shall issue except after notice and hearing on the same, and any interested party may appear and take part in any proceedings.

History of Section. P.L. 1944, ch. 1500, § 7; G.L. 1956, § 39-11-11 .

Cross References.

Bills of lading, § 6A-7-102 et seq.

Stoppage of goods in transit, §§ 6A-2-609 et seq., 6A-7-504 .

39-11-12. Issuance of securities.

Any corporation or association, presently existing, and any that may hereafter be organized or authorized to do business under the laws of this state, or any lessee, or trustee, or any person or persons owning, conducting, managing, operating, or controlling any air carrier engaged in intrastate commerce, may issue stocks and bonds, notes, or other evidences of indebtedness, payable at periods of more than twelve (12) months after the date thereof, only when there shall have been secured from the administrator an order authorizing the issue. Any person, corporation, or association desiring authority to issue stocks or bonds, notes, or other evidences of indebtedness shall make written application therefor to the administrator in such form as the administrator may require. The administrator shall thereafter make such inquiry or investigation as he or she may deem necessary, and the administrator may hold such hearings and examine such witnesses’ books, papers, documents, or contracts as he or she may deem of importance, for the purpose of enabling him or her to reach a determination. The administrator shall authorize the issuance of the stocks or bonds, notes, or other evidences of indebtedness, if he or she shall be shown that the funds to be so realized are necessary for the acquisition of property, the construction, completion, extension, or improvement of facilities, or for the improvement or maintenance of service, or for the discharge or lawful refunding of obligations, or for any other proper purpose.

History of Section. P.L. 1944, ch. 1500, § 8; G.L. 1956, § 39-11-12 .

39-11-13. Certification of established common carriers.

Any common carrier in operation on or before April 23, 1944, shall be entitled to a certificate of convenience and necessity as a matter of right, and without proof of public convenience and necessity, authorizing it to continue operations over the route or routes and between the points it had been serving in intrastate commerce on or prior to April 23, 1944.

History of Section. P.L. 1944, ch. 1500, § 9; G.L. 1956, § 39-11-13 .

39-11-14. Revocation, suspension, or modification of certificate.

Upon application of any person, or upon his or her own motion, and upon at least ten (10) days’ notice to the parties affected thereby, and for good cause, and after an opportunity for a hearing on the application, the administrator may revoke, suspend, alter, amend, or modify any and all of his or her orders and findings, but no certificate shall be amended, altered, modified, revoked, suspended, or impaired except after like notice and opportunity to be heard and upon clear proof of good, just, and sufficient cause.

History of Section. P.L. 1944, ch. 1500, § 10; G.L. 1956, § 39-11-14 ; P.L. 1997, ch. 326, § 112.

39-11-15. Authority for abandonment or suspension of service.

No air carrier shall abandon any route or part thereof for which a certificate has been issued by the administrator unless, upon the application of the air carrier and after notice and a hearing by the administrator, he or she shall find abandonment to be in the public interest. Any interested person may appear and be heard in opposition or in support of any abandonment. The administrator may, by regulation or otherwise, authorize such temporary suspension of service as may be in the public interest.

History of Section. P.L. 1944, ch. 1500, § 10; G.L. 1956, § 39-11-15 .

39-11-16. Abandonment as ground for revocation.

Failure to commence operations within the time prescribed in the certificate or order of the administrator, or discontinuance of operations for more than sixty (60) days, shall be deemed just cause for revocation, but shall not be regarded as the sole cause for such action.

History of Section. P.L. 1944, ch. 1500, § 10; G.L. 1956, § 39-11-16 .

39-11-17. Certification of charter carriers — Provisions applicable.

  1. Any person seeking to engage in the operation, or to extend a present operation, as a charter carrier, shall first obtain a certificate of public convenience and advantage from the public utilities administrator in accordance with the provisions of this chapter.
  2. The provisions of §§ 39-11-4 39-11-10 , 39-11-14 39-11-16 and 39-11-23 , shall apply to all applications and all charter carriers.

History of Section. P.L. 1944, ch. 1500, § 11; G.L. 1956, § 39-11-17 .

39-11-18. Certification of established charter carriers.

Any charter carrier in operation on or before April 23, 1944, shall be entitled to a certificate of public convenience and advantage as a matter of right and without proof of public convenience and advantage; provided, however, that any charter carrier temporarily prevented from carrying on any authorized operations because of the emergency created by World War II, shall be considered as having been in operation on April 23, 1944, for the purposes of this section.

History of Section. P.L. 1944, ch. 1500, § 11; G.L. 1956, § 39-11-18 .

39-11-19. Application by interstate carrier.

To aid in promoting and developing interstate transportation of persons and property by aircraft, any holder of a certificate of convenience and necessity issued by the federal Civil Aeronautics Board or any other appropriate federal governmental authority may apply to the administrator for a certificate for that portion of its interstate operation that is within the boundaries of this state, upon the forms and in the manner prescribed by the administrator for applications.

History of Section. P.L. 1944, ch. 1500, § 16; G.L. 1956, § 39-11-19 .

39-11-20. Certification of interstate carrier.

Within a reasonable time after the filing of an application, the administrator shall issue a certificate to the applicant without a hearing thereon for that portion of the interstate operation that is within this state, upon such terms and conditions as he or she may deem proper and in the public interest, but the terms and conditions shall not conflict with those under which the federal certificate is issued. Any rights conferred upon the holder of any certificate issued under the provisions of §§ 39-11-19 39-11-21 as well as the terms and conditions applicable thereto, shall apply only to intrastate operations performed in conjunction with interstate operations under the federal certificate, and the certificate issued under this section shall not be construed to grant to the holder thereof the right to operate otherwise as an intrastate carrier.

History of Section. P.L. 1944, ch. 1500, § 16; G.L. 1956, § 39-11-20 ; P.L. 1997, ch. 326, § 112.

39-11-21. Notice to interstate carriers of proceedings.

For the purpose of receiving due notice of all proceedings before the administrator relating to aeronautics, the administrator is hereby authorized and directed to notify all holders of certificates issued under §§ 39-11-19 and 39-11-20 in the same manner as he or she is directed to notify holders of certificates issued under other provisions of this chapter.

History of Section. P.L. 1944, ch. 1500, § 16; G.L. 1956, § 39-11-21 .

39-11-22. [Repealed.]

History of Section. P.L. 1944, ch. 1500, § 12; G.L. 1956, § 39-11-22 ; Repealed by P.L. 1969, ch. 240, § 18.

Compiler’s Notes.

Former § 39-11-22 concerned issuance of securities.

39-11-23. Penalty for violations.

  1. Any person violating any of the provisions of this chapter shall be guilty of a misdemeanor and, upon conviction thereof, shall be fined not exceeding five hundred dollars ($500) or imprisoned for a term not exceeding one year, or shall be so fined and imprisoned.
  2. For the purposes of this chapter, each day during which any violation shall occur shall constitute a separate and distinct offense.

History of Section. P.L. 1944, ch. 1500, § 13; G.L. 1956, § 39-11-23 .

39-11-24 — 39-11-26. [Repealed.]

Repealed Sections.

These sections (P.L. 1944, ch. 1500, § 14; G.L. 1956, §§ 39-11-24 — 39-11-26), concerning the air carrier advisory board, were repealed by P.L. 1979, ch. 362, § 1. The legislative authority for the air carrier advisory board was to have ceased as of June 30, 1979 by P.L. 1978, ch. 387, § 1.

39-11-27. Severability.

Each section of this chapter and each part of each section is hereby declared to be an independent section, and the holding of any section or sections or part or parts thereof to be void, ineffective, or unconstitutional for any cause shall not be deemed to affect any other section or part thereof.

History of Section. P.L. 1944, ch. 1500, § 15; G.L. 1956, § 39-11-27 .

Chapter 12 Motor Carriers of Property

39-12-1. Declaration of policy.

It is hereby declared to be the policy of the state to regulate transportation of property by motor carriers upon its publicly used highways in such manner as to recognize and preserve the inherent advantages of transportation, and to foster sound economic conditions in transportation and among carriers engaged therein in the public interest; and in connection therewith to:

  1. Promote adequate, economical, and efficient service by motor carriers and reasonable charges therefor without unjust discriminations, undue preferences, or advantages or unfair or destructive competitive practices;
  2. Improve the relations between, and coordinate transportation by and the regulations of motor carriers and other carriers;
  3. Develop and preserve a highway transportation system properly adapted to the needs of the commerce of the state; and
  4. Promote safety upon its publicly used highways in the interest of its citizens.

History of Section. P.L. 1935, ch. 2268, art. 1, § 1; G.L. 1938, ch. 99, art. 1, § 1; P.L. 1946, ch. 1805, § 1; G.L. 1956, § 39-12-1 ; P.L. 1958, ch. 87, § 1.

Cross References.

Drivers of vehicles, off-duty time required, § 31-27-5 et seq.

Comparative Legislation.

Carriers of property:

Conn. Gen. Stat. § 13b-387 et seq.

Mass. Ann. Laws ch. 159B, § 1 et seq.

NOTES TO DECISIONS

In General.

City’s request for proposals requiring towing companies to remit a referral fee to the city was invalid because enforcement of the Towing Storage Act, R.I. Gen. Laws tit. 39, ch. 12.1, rested with the state Division of Public Utilities and there was no transfer or delegation of that authority to the cities and towns; further, R.I. Gen. Laws § 39-12-12 contained language that prohibited a towing company from refunding or remitting, in any manner, any portion of its fee. Thus, state law explicitly prohibited towing companies from both refunding money to a customer and from transmitting any portion of the rates or charges to anyone in any manner, including the person or entity that selected the tow company. Grasso Serv. Ctr. v. Sepe, 962 A.2d 1283, 2009 R.I. LEXIS 13 (2009).

Collateral References.

Liability for accident occurring in motor transportation of house or similar structure on public streets or highways. 9 A.L.R.3d 1436.

Motorbus or truck terminal as nuisance. 2 A.L.R.3d 1372.

39-12-2. Definitions.

As used in this chapter:

  1. “Administrator” means the public utilities administrator.
  2. “Certificate” means a certificate of public convenience and necessity issued under this chapter or by any corresponding provisions of earlier laws to a common carrier by motor vehicle.
  3. “Common carrier” means any person who or that undertakes, whether directly or by any other arrangements, to transport property, or any class or classes of property, by motor vehicle between points within this state, for the general public for compensation, over the publicly used highways of this state, whether over regular or irregular routes.
  4. “Contract carrier” means any person who or that engages in transportation by motor vehicle of property in intrastate commerce, for compensation (other than transportation referred to in the preceding paragraph), under continuing contracts with one person or an unlimited number of persons for the furnishing of transportation services of a special and individual nature required by the shipper and not generally provided by common carriers.
  5. “Driveaway-towaway operations” means any operation in which any motor vehicle or motor vehicles, new or used, constitute the commodity being transported, when one set or more of wheels of any motor vehicle or motor vehicles are on the highway during the course of transportation, whether or not any motor vehicle furnishes the automotive power.
  6. “Driver” means any person operating a motor vehicle used for the transportation of property, that he or she owns or is operating with the express or implied consent of its owner.
  7. “Interstate carrier” means any person who or that operates motor vehicles for the transportation of property of others for compensation over the publicly used highways of this state in interstate commerce authorized or certified by the Interstate Commerce Commission.
  8. “Interstate commerce” means commerce between any place in this state and any place in another state or between places in this state through another state.
  9. “Interstate permit” means an interstate carrier permit issued by the administrator to an interstate common or contract carrier by motor vehicle operating for compensation over the publicly used highways of this state.
  10. “Intrastate commerce” means any commerce wholly within this state by motor vehicle between points having a point of origin and a point of destination within this state.
  11. “Irregular route” means a route or routes within the territory as set forth in the carrier’s certificate, but not over a specified route or routes between fixed termini.
  12. “Motor carrier” means a common carrier by motor vehicle, a contract carrier by motor vehicle, or an interstate carrier by motor vehicle.
  13. “Motor vehicle” means any vehicle, machine, truck, tractor-trailer, or semi-trailer propelled or drawn by any mechanical power and used upon the highways in the transportation of property, but does not include any vehicle or car operated on a rail or rails whether on or off the publicly used highways.
  14. “Natural subdivision” means a group of persons engaged in the motor trucking industry that, by the nature and similarity of the service performed, has operating interests peculiar to the groups and that by reason thereof requires distinct and separate regulations.
  15. “Permit” means a permit issued under this chapter or corresponding provisions of earlier laws to a contract carrier by motor vehicle.
  16. “Person” means any individual, firm, co-partnership, corporation, company, association, or joint stock association, and includes any trustee, receiver, assignee, or personal representative thereof; and, where the context requires shall include “driver,” as defined in this section.
  17. “Private carrier” means any person, other than a common carrier or a contract carrier or an interstate carrier who or that transports in intrastate or interstate commerce by motor vehicle, property of which the person is the owner, lessee, or bailee, when the transportation is for the purpose of sale, lease, rent, or bailment, or in the furtherance of any commercial enterprise. The private carrier shall be exempted from the provisions of this chapter.
  18. “Publicly used highways” means all public ways, roads, highways, streets, avenues, alleys, boulevards, parks, squares, and bridges and approaches thereto, within this state.
  19. “Regular route” means a specified route or routes, between fixed termini, as set forth in the carrier’s certificate.

History of Section. P.L. 1935, ch. 2268, art. 2, §§ 1-8; G.L. 1938, ch. 99, art. 2, §§ 1-8; G.L. 1938, ch. 99, art. 2, §§ 1-10; P.L. 1946, ch. 1805, § 1; G.L. 1956, § 39-12-2 ; P.L. 1958, ch. 87, § 1; P.L. 1967, ch. 209, § 1; P.L. 1984, ch. 81, § 15.

NOTES TO DECISIONS

Towing Service.

Person, who, at the request of his neighbor, towed to his own service station where he did repair work a pick-up truck owned by his neighbor, but who refused to release it to his neighbor upon demand unless paid $5 for towing it to the service station, although he had owned an automobile repair business since 1931, did not do towing in the line of his business and did not have a tow truck nor do tow work for compensation, was neither a common carrier by tow away method nor a contract carrier by tow away method within the intendment of this law. Ambrosino v. Public Util. Hearing Bd., 93 R.I. 236 , 174 A.2d 285, 1961 R.I. LEXIS 99 (1961).

Collateral References.

Co-operative, purchasing or marketing associations, or their members, persons hauling commodities for, as common carriers. 98 A.L.R. 226.

Highways, person or corporation transporting goods on, as a common carrier, as regards liability for loss of, or damage to, goods. 112 A.L.R. 89.

Motor vehicles, what carriers are within statutory definition of common carriers by. 161 A.L.R. 417.

Persons or corporations engaged in local transportation of goods as common carriers. 18 A.L.R. 1316.

39-12-3. Exemption from regulations.

There shall be exempted from the provisions of this chapter:

  1. Motor vehicles while engaged exclusively in the delivery of United States mail;
  2. Motor vehicles owned and operated by the government of the United States;
  3. Motor vehicles owned and operated by a cooperative group and used exclusively for the transportation of the property of the cooperative group or its members;
  4. Motor vehicles used exclusively in the transportation of agricultural commodities or horticultural commodities or products from a farm, or farm supplies to a farm;
  5. Motor vehicles engaged in the plowing or removal of snow from the publicly used highways within this state;
  6. Motor vehicles engaged in the transportation of garbage, ashes, and debris removed from private dwellings, commercial, and industrial establishments;
  7. Motor vehicles engaged exclusively in transporting newspapers.

History of Section. P.L. 1935, ch. 2268, art. 5, § 6; G.L. 1938, ch. 99, art. 5, § 6; G.L. 1938, ch. 99, art. 5, § 3; P.L. 1946, ch. 1805, § 1; G.L. 1956, § 39-12-3 4; G.L. 1956, § 39-12-3 ; P.L. 1958, ch. 87, § 1.

39-12-4. General powers and duties of the administrator.

  1. It shall be the duty of the administrator:
    1. To regulate common carriers by motor vehicle as provided in this chapter, and, to that end, the administrator may establish reasonable requirements with respect to continuous and adequate service, uniform system of accounts, records and reports, and preservation of records;
    2. To regulate contract carriers by motor vehicle as provided in this chapter, and, to that end, the administrator may establish reasonable requirements with respect to uniform system of accounts, records, and reports, and preservation of records;
    3. To administer, execute, and enforce all provisions of this chapter, to make all necessary orders in connection therewith, and to prescribe rules, regulations, and procedure of administration;
    4. For the purposes of the administration of the provisions of this chapter, to inquire into the management of the business of motor carriers and into the management of the business of persons controlling, controlled by, or under common control with, motor carriers to the extent that the business of the persons is related to the management of the business of one or more motor carriers, and the administrator shall keep himself or herself informed as to the manner and method in which the businesses are conducted, and may obtain from the carriers and persons the information as the administrator deems necessary to carry out the provisions of this chapter;
    5. To administer, execute, and enforce all provisions of chapter 12.1 of this title and to make all necessary orders in connection therewith and to prescribe rules, regulations, and procedure of administration.
  2. The administrator may, from time to time, establish the just and reasonable classifications of groups of carriers included in the term “common carrier,” or “contract carrier,” as the special nature of the service performed by carrier shall require; and such just reasonable rules, regulations, and requirements, consistent with the provisions of this chapter, to be observed by the carriers so classified or grouped, as the administrator deems necessary or desirable in the public interest.
  3. Upon complaint in writing to the administrator by any person, organization, or body politic or upon his or her own initiative without complaint, the administrator may investigate whether any motor carrier has failed to comply with any provisions of this chapter, or with any requirements established pursuant thereto. If the administrator, after notice and hearing, finds upon any investigation that the motor carrier has failed to comply with any provisions or requirement, the administrator shall issue an appropriate order to compel the carrier to comply therewith. Whenever the administrator is of the opinion that any complaint does not state reasonable grounds for investigation and action on his or her part, he or she may dismiss the complaint. Whenever a formal investigation shall be made by the administrator, it shall be his or her duty to make a report in writing in respect thereto, which shall state the conclusions of the administrator, together with his or her decision, order, or requirement in the premises. All reports of investigations made by the administrator shall be entered of record, and a copy thereof shall be furnished to the party who may have complained and to any common carrier or contract carrier that may have been complained of.
  4. The copies of schedules and classifications and tariffs of rates and charges, and all agreements and arrangements between common carriers filed with the administrator as provided in this chapter, and the statistics, tables, and figures contained in the annual or other reports of carriers filed with the administrator, as required under the provisions of this chapter, shall be preserved as public records in the custody of the administrator, and shall be received as prima facie evidence of what they purport to be for the purpose of investigation by the administrator and in all judicial proceedings, and copies of and extracts from any of the schedules, classifications, tariffs, agreements, or arrangements, or reports, made public records as provided in this subsection, certified by the administrator, under the administrator’s seal, shall be received in evidence with like effect as the originals.
  5. The administrator may establish reasonable requirements with respect to maximum hours of service of employees and safety of operation and equipment.

History of Section. P.L. 1958, ch. 87, § 1; P.L. 1969, ch. 240, § 12; P.L. 1994, ch. 328, § 3; P.L. 1997, ch. 326, § 113.

NOTES TO DECISIONS

Delegation of Authority.

City’s request for proposals requiring towing companies to remit a referral fee to the city was invalid because enforcement of the Towing Storage Act, R.I. Gen. Laws tit. 39, ch. 12.1, rested with the state Division of Public Utilities and there was no transfer or delegation of that authority to the cities and towns; further, R.I. Gen. Laws § 39-12-12 contained language that prohibited a towing company from refunding or remitting, in any manner, any portion of its fee. Thus, state law explicitly prohibited towing companies from both refunding money to a customer and from transmitting any portion of the rates or charges to anyone in any manner, including the person or entity that selected the tow company. Grasso Serv. Ctr. v. Sepe, 962 A.2d 1283, 2009 R.I. LEXIS 13 (2009).

39-12-5. Administration of chapter — Investigations — Hearings.

  1. For the effective administration of this chapter as may relate to the supervision and regulation of motor carriers of property over the highways of this state in intrastate or interstate commerce, the administrator shall designate examiners, investigators, field investigators, hearing officers, regulatory inspectors, and other employees to enforce and carry into effect the provisions of this chapter; to make investigations; and to conduct hearings on any matter arising under this chapter. In conducting an investigation and/or hearing, the person so designated by the administrator shall be vested with all powers conferred on the administrator by this chapter; and upon completion of the investigation and/or hearing, the party hearing or investigating shall decide the matter at issue in hearing or under investigation and shall file his or her decision and findings in writing with the administrator, and his or her decision or finding when signed by the administrator shall be deemed the decision and order of the administrator.
  2. The administrator, or his or her duly authorized examiners, investigators, officers, or regulatory inspectors, shall have authority to examine all equipment of motor carriers and lessors and shall have authority to inspect, examine, and copy all accounts, books, records, memoranda, correspondence, and other documents of motor carriers and/or lessors, and documents, accounts, books, records, correspondence, and memoranda of any person controlling, controlled by, or under common control of any carrier, as the administrator shall deem relevant to the person’s relation to or transaction with the carrier. Motor carriers, lessors, or persons shall submit their accounts, books, records, memoranda, correspondence, or other documents, relating to motor carrier activities only, for the inspection and copying authorized by this section, and motor carriers and lessors shall submit their equipment for examination and inspection, to any duly authorized examiner, investigator, or regulatory inspector upon demand and the display of proper credentials. The administrator shall have the power to administer oaths; summon and examine witnesses; and order the production and examination of books, accounts, records, memoranda, correspondence, and other documents in any proceeding within the jurisdiction of the administrator. All subpoenas and orders for the production of books, accounts, papers, records, and documents shall be signed and issued by the administrator and served as subpoenas in civil cases in the superior court are now served, and witnesses so subpoenaed shall be entitled to the same fees for attendance and travel as are now provided for witnesses in civil cases in the superior court.
  3. If the person subpoenaed to attend before the division fails to obey the command of the subpoena without reasonable cause, or if a person in attendance before the administrator shall, without reasonable cause, refuse to be sworn, or to be examined, or to answer a legal or pertinent question, or if any person shall refuse to produce books, accounts, records, memoranda, correspondence, or other documents material to the issue, set forth in an order duly served on him or her, the administrator or his or her agent thereof may apply to any justice of the superior court of any county, upon proof by affidavit of the fact, for a rule or order returnable in not less than two (2) or more than five (5) days, directing the person to show cause before the justice who made the order or any justice of the superior court why he or she should not be adjudged for contempt. Upon return of the order, the justice before whom the matter is brought for a hearing shall examine under oath the person, and the person shall be given an opportunity to be heard, and if the justice shall determine that the person has refused without reasonable cause or legal excuse to be examined or to answer a legal question and a pertinent question, or to produce books, accounts, records, memoranda, correspondence, or other documents material to the issue that he or she was ordered to bring or produce, the justice may immediately commit the offender to jail, there to remain until he or she submits to do the act for which he or she was required to do, or is discharged according to law.

History of Section. P.L. 1958, ch. 87, § 1; P.L. 1967, ch. 209, § 2.

39-12-6. Requirement of certificate of public convenience and necessity for common carriers — Application.

Except as otherwise provided in this chapter, no person shall engage in the business of transporting property for compensation in intrastate commerce over the publicly used highways as a common carrier, unless there shall be in force with respect to the carrier a certificate of public convenience and necessity issued by the administrator authorizing the operations. Every person proposing to operate as a common carrier shall file with the administrator, in the form to be provided by him or her, an application for a certificate, accompanied by a fee of two hundred and fifty dollars ($250). All revenues received under this section shall be deposited as general revenues. Each application for a certificate shall be made in writing; shall be verified by oath or written declaration that it is made under penalties of perjury; and shall contain such information as the administrator may require. The administrator shall, within a reasonable time, fix the time and place of hearing on every application. Notice of the hearing shall be given by publication or by written notice mailed by the administrator at least ten (10) days before the date fixed thereof to all common carriers, including railroad companies, if any, serving any part of the route or territory proposed to be served by the applicant; to each person filing with the administrator a written request for the notice; and to any other person who may, in the opinion of the administrator, be interested in or affected by the issuance of the certificate. The copy of the notice, including a list of the applications to be heard, shall be publicly posted in the office of the administrator. Any person having an interest in the matter shall have the right, in accordance with rules prescribed therefor by the administrator, to make representations and to introduce evidence in favor of or in opposition to the issuance of the certificate.

History of Section. P.L. 1935, ch. 2268, art. 3, §§ 1, 2, art. 5, § 1; G.L. 1938, ch. 99, art. 3, §§ 1, 2, art. 5, § 1; P.L. 1946, ch. 1805, § 1; G.L. 1956, §§ 39-12-3 39-12-5 , 39-12-24 ; G.L. 1956, § 39-12-6 ; P.L. 1958, ch. 87, § 1; P.L. 1960, ch. 71, art. 3, § 32; P.L. 1980, ch. 339, § 1; P.L. 1992, ch. 133, art. 34, § 5; P.L. 1995, ch. 370, art. 40, § 118; P.L. 2007, ch. 73, art. 26, § 2; P.L. 2007, ch. 485, § 2.

NOTES TO DECISIONS

Delegation of Authority.

City’s request for proposals requiring towing companies to remit a referral fee to the city was invalid because enforcement of the Towing Storage Act, R.I. Gen. Laws tit. 39, ch. 12.1, rested with the state Division of Public Utilities and there was no transfer or delegation of that authority to the cities and towns; further, R.I. Gen. Laws § 39-12-12 contained language that prohibited a towing company from refunding or remitting, in any manner, any portion of its fee. Thus, state law explicitly prohibited towing companies from both refunding money to a customer and from transmitting any portion of the rates or charges to anyone in any manner, including the person or entity that selected the tow company. Grasso Serv. Ctr. v. Sepe, 962 A.2d 1283, 2009 R.I. LEXIS 13 (2009).

Collateral References.

Interstate commerce, state requirements as to certificate of convenience and necessity as interference with. 85 A.L.R. 1136; 109 A.L.R. 1245; 135 A.L.R. 1358.

39-12-7. Issuance of certificate to common carrier.

A certificate shall be issued by the administrator, after a hearing, to any qualified applicant therefor, authorizing the whole or any part of the operations covered by the application, if it is found that the applicant is fit, willing, and able properly to perform the service proposed and to conform to the provisions of this chapter and the requirements, orders, rules, and regulations of the administrator thereunder; otherwise the application shall be denied. Any certificate issued under this chapter shall specify the service to be rendered. Certificates issued under this chapter shall be renewed before the close of business on December 31 of each calendar year. The renewal fee shall be one hundred dollars ($100) and shall be submitted with the renewal form. All revenues received under this section shall be deposited as general revenues. No certificate shall be issued to a common carrier by motor vehicle or, when issued, shall remain in force authorizing the transportation of property over the publicly used highways of this state, unless the rates and charges upon which the property is transported by the carrier shall have been published in the tariff and filed with the administrator in accordance with this chapter.

History of Section. P.L. 1935, ch. 2268, art. 3, § 2; G.L. 1938, ch. 99, art. 3, § 2; G.L. 1938, ch. 99, art. 3, §§ 2, 3; P.L. 1946, ch. 1805, § 1; G.L. 1956, §§ 39-12-6 , 39-12-7 , 39-12-14 ; P.L. 1958, ch. 87, § 1; P.L. 1992, ch. 133, art. 34, § 5; P.L. 1995, ch. 370, art. 40, § 118; P.L. 2018, ch. 176, § 18; P.L. 2018, ch. 289, § 18.

Collateral References.

Carrier’s certificate of convenience and necessity, franchise, or permit as subject to transfer or encumbrance. 15 A.L.R.2d 883.

“Grandfather clause,” construction of. 4 A.L.R.2d 697.

Liability of lessor motor carrier for lessee’s torts or nonperformance of franchise duties. 34 A.L.R.2d 1121.

39-12-8. Declaration of public interest in contract carriers.

It is hereby declared that the business of contract carrier, as defined in this chapter, is affected with the public interest, and that the safety and welfare of the public upon the public highways within this state, the preservation and maintenance of the highways, and the proper regulation of common carriers using highways require the regulation of contract carriers to the extent provided in this chapter.

History of Section. P.L. 1935, ch. 2268, art. 4, § 1; G.L. 1938, ch. 99, art. 4, § 1; P.L. 1946, ch. 1805, § 1; G.L. 1956, § 39-12-15 ; G.L. 1956, § 39-12-8 ; P.L. 1958, ch. 87, § 1; P.L. 1997, ch. 326, § 113.

Collateral References.

Discrimination between commercial vehicles depending on whether a direct charge is made for the services. 81 A.L.R. 1145.

Validity of statutes relating to use of highway by private motor carriers and contract motor carriers. 109 A.L.R. 550; 175 A.L.R. 1333.

39-12-9. Permit requirement for contract carriers — Application.

Except as otherwise provided in this chapter, no person shall engage in the business of transporting property as a contract carrier by motor vehicle, in intrastate commerce, over the publicly used highways of this state, unless there is in force, with respect to the carrier, a permit issued by the administrator authorizing the person to engage in the business. Every person proposing to operate as a contract carrier shall file with the administrator, in the form to be provided by him or her, an application for a permit, accompanied by a fee of one hundred dollars ($100). All revenues received under this section shall be deposited as general revenues. Each application for the permit shall be made in writing; be verified under oath or written declaration that it is made under penalties of perjury; and shall contain such information as the administrator may require. The administrator shall, within a reasonable time, fix the time and place of the hearing on every application. Notice of the hearing shall be given by publication or by written notice, mailed by the administrator at least ten (10) days before the date fixed therefor, to all common and contract carriers, including railroad companies, if any, serving any part of the route or territory proposed to be served by the applicant; to each person filing with the administrator a written request for the notice; and to any other person who may, in the opinion of the administrator, be interested in or affected by the issuance of the permit. A copy of the notice, including a list of the applications to be heard, shall be publicly posted in the office of the administrator. Any person having an interest in the matter shall have the right, in accordance with the rules and regulations prescribed therefor by the administrator, to make representations and to introduce evidence in favor of or in opposition to the issuance of the permit.

History of Section. P.L. 1935, ch. 2268, art. 4, §§ 2, 3, art. 5, § 1; G.L. 1938, ch. 99, art. 4, §§ 2, 3, art. 5, § 1; P.L. 1946, ch. 1805, § 1; G.L. 1956, §§ 39-12-16 , 39-12-17 , 39-12-24 ; G.L. 1956, § 39-12-9 ; P.L. 1958, ch. 87, § 1; P.L. 1960, ch. 71, art. 3, § 32; P.L. 1980, ch. 339, § 1; P.L. 1992, ch. 133, art. 34, § 5; P.L. 1995, ch. 370, art. 40, § 118.

Collateral References.

Use of highway by private and contract motor carriers for hire, validity of statutes imposing taxes and fees on. 109 A.L.R. 559; 175 A.L.R. 1333.

39-12-10. Issuance of permit to contract carrier.

A permit shall be issued to any qualified applicant therefor authorizing, in whole or in part, the operations covered by the application, if it shall appear, after a hearing, that the applicant is fit, willing, and able properly to perform the services of a contract carrier by motor vehicle; and to conform to the provisions of this chapter and the requirements, rules, and regulations of the administrator made thereunder; and that the proposed operation, to the extent authorized by the permit, will be consistent with the public interest; otherwise, the application shall be denied. Permits issued under this chapter shall be renewed before the close of business on December 31 of each calendar year. The renewal fee shall be one hundred dollars ($100) and shall be submitted with the renewal form. All revenues received under this section shall be deposited as general revenues. The administrator shall specify in the permit the business of the contract carrier covered thereby and the scope thereof; and he or she shall attach to it at the time of issuance, and from time to time thereafter, such reasonable terms, conditions, and limitations consistent with the character of the holder as a contract carrier, as the public interest may require, but may in no way limit the number of contracts that the contract carrier may hold under the permit. The contract carrier shall have the right to substitute or add to his or her or its equipment and facilities as the development of the business may require.

History of Section. P.L. 1935, ch. 2268, art. 4, § 4; G.L. 1938, ch. 99, art. 4, § 4; P.L. 1946, ch. 1805, § 1; G.L. 1956, § 39-12-18 ; G.L. 1956, § 39-12-10 ; P.L. 1958, ch. 87, § 1; P.L. 1992, ch. 133, art. 34, § 5; P.L. 1995, ch. 370, art. 40, § 118.

39-12-11. Publication of tariffs of common carriers.

Every common carrier by motor vehicle shall print, file with the administrator, and keep open for public inspection, tariffs showing all the rates and charges for transportation, and all services in connection therewith, of property, in intrastate commerce, between points on its own routes and points on the routes of any other carrier, or on the routes of any common carrier by railroad, express, or water, when a through route and joint rate shall have been established. A filing fee of fifty dollars ($50.00) must accompany all filings made pursuant to this section. All revenues received under this section shall be deposited as general revenues. The rates and charges shall be stated in lawful money of the United States. The tariffs required by this section shall be published, filed, and posted in such form and manner, and shall contain such information as the administrator, by regulation, shall prescribe. The administrator may reject any tariff filed with him or her that is not consistent with this section and with the regulations. Any tariff so rejected by the administrator shall be void and its use shall be unlawful.

History of Section. P.L. 1935, ch. 2268, art. 3, § 3; G.L. 1938, ch. 99, art. 3, § 3; P.L. 1946, ch. 1805, § 1; G.L. 1956, § 39-12-7 ; G.L. 1956, § 39-12-11 ; P.L. 1958, ch. 87, § 1; P.L. 1992, ch. 133, art. 34, § 5; P.L. 1995, ch. 370, art. 40, § 118.

Cross References.

Bills of lading, § 6A-7-102 et seq.

Stoppage of goods in transit, §§ 6A-2-702 et seq., 6A-7-504 .

Collateral References.

Fixed rates, necessity of, to make one engaged in local transportation of goods a common carrier. 18 A.L.R. 1318.

39-12-12. Establishment of rates and charges of common carriers — Rate discrimination — Rebates.

It shall be the duty of every common carrier of property by motor vehicle to establish, observe, and enforce just, reasonable, and reasonably compensatory rates, charges, and classification, and reasonable regulations and practices relating thereto, which shall become effective on a date fixed by the carrier, which shall be at least thirty (30) days after the filing of the tariff containing the rates, charges, and classification, unless suspended by the administrator, prior to the effective date of the tariff or classification, upon complaint of any person, organization, or body politic or by the administrator on his or her own motion. No change shall be made in any rate, charge, classification, or any rule, regulation, or practice affecting the rate, charge, or classification, or the value of the service thereunder specified in any tariff of a common carrier by motor vehicle, except after thirty (30) days’ notice of the proposed change filed and posted in accordance with § 39-12-11 . The notice shall plainly state the changes proposed to be made and the time when the change will take effect. The administrator, in his or her discretion and for good cause shown, may allow the publication of rates or charges or a change in classification therein, upon notice less than that specified in this section, or may modify the requirements of this section with respect to the posting and filing of tariffs and classifications, either in particular instances or by general order applicable to special or peculiar circumstances or conditions. The administrator, after a hearing, may establish, from time to time, such reasonable rules and regulations as he or she may deem necessary pertaining to the form of tariffs, classifications, or supplements thereto; the time and manner of filing thereof; the suspension of rates before the rates become effective; and bearing upon the validity of any filed or existing rate. No common carrier of property by motor vehicle shall charge or demand or collect or receive a greater or less compensation for transportation or any service in connection therewith between points enumerated in the tariff than the rates and charges specified in the filed tariffs in effect at the time; and no carrier shall refund or remit in any manner or by any device, directly or indirectly, or through any other person, any portion of the rates or charges so specified, or extend to any person any privileges or facilities for transportation in intrastate commerce, except such as are specified in its tariffs.

History of Section. P.L. 1935, ch. 2268, art. 3, § 3; G.L. 1938, ch. 99, art. 3, § 3; P.L. 1946, ch. 1805, § 1; G.L. 1956, §§ 39-12-8 39-12-11 ; G.L. 1956, § 39-12-12 ; P.L. 1958, ch. 87, § 1; P.L. 1997, ch. 326, § 113.

NOTES TO DECISIONS

Referral Fees.

City’s request for proposals requiring towing companies to remit a referral fee to the city was invalid because enforcement of the Towing Storage Act, R.I. Gen. Laws tit. 39, ch. 12.1, rested with the state Division of Public Utilities and there was no transfer or delegation of that authority to the cities and towns; further, R.I. Gen. Laws § 39-12-12 contained language that prohibited a towing company from refunding or remitting, in any manner, any portion of its fee. Thus, state law explicitly prohibited towing companies from both refunding money to a customer and from transmitting any portion of the rates or charges to anyone in any manner, including the person or entity that selected the tow company. Grasso Serv. Ctr. v. Sepe, 962 A.2d 1283, 2009 R.I. LEXIS 13 (2009).

39-12-13. Alteration of common carrier rates by the administrator.

  1. The administrator, upon complaint of any common carrier by motor vehicle or of any person, or upon his or her own motion, after a hearing, may allow or disallow any filed or existing rates and may alter or prescribe the rates of common carriers in connection with the transportation of any or all classes of property to any or between any and all points within the state and any service connected therewith in accordance with the legal standards provided in this chapter. Whenever, upon complaint or in any investigation on his or her own initiative, the administrator, after a hearing, shall be of the opinion that any rate or charge collected, charged, or demanded by any common carrier by motor vehicle, or any classification, rule, regulation, or practice whatsoever of the carrier affecting the rate, charge, or the value of the service thereunder, is or will be unjust or unreasonable, or unjustly discriminatory, or unduly preferential, or unduly prejudicial, he or she shall determine and prescribe the lawful rate or charge, or the maximum and/or minimum rate or charge thereafter to be observed or the lawful classification, rule, regulation, or practice thereafter to be effective.
  2. The administrator shall implement a gasoline price emergency surcharge program whereby a person licensed under this chapter to perform “driveaway-towaway operations” shall be permitted to impose and collect a surcharge, during such times and under such conditions wherein the administrator determines that the average price of gasoline in this state exceeds one dollar and fifty cents ($1.50) per gallon. Provided, that the administrator shall have discretion as to when to permit such surcharge to be imposed, except that the administrator shall not impose the surcharge at any time when the average price of gasoline, as determined by the administrator, does not exceed the price of one dollar and fifty cents ($1.50) per gallon.
  3. The administrator shall implement a diesel price emergency surcharge program whereby a person licensed under § 39-3-3 , § 39-3-3 .1, or § 39-3-4 to perform as a “common carrier of persons and/or property upon water between termini within the state,” providing “lifeline” service as determined by the division, shall be permitted to impose and collect a surcharge for each passenger and vehicle carried, during periods when it is determined that the average retail price of diesel fuel in this state exceeds one dollar and twenty cents ($1.20) per gallon; provided, however, that no such surcharge shall be authorized for carriers providing service that is determined by the division to be “discretionary” in nature.

History of Section. P.L. 1935, ch. 2268, art. 3, § 3; G.L. 1938, ch. 99, art. 3, § 3; P.L. 1946, ch. 1805, § 1; G.L. 1956, § 39-12-12 ; G.L. 1956, § 39-12-13 ; P.L. 1958, ch. 87, § 1; P.L. 2001, ch. 307, § 2; P.L. 2003, ch. 412, § 2; P.L. 2005, ch. 352, § 1; P.L. 2010, ch. 192, § 1; P.L. 2010, ch. 208, § 1.

Collateral References.

Action against carrier on ground that rates filed and published pursuant to law were excessive, right to maintain. 97 A.L.R. 406.

Judicial release of carrier from contract rates which have become inadequate. 6 A.L.R. 1659; 10 A.L.R. 1335.

Right of common or private carrier on highways to challenge rates of common carriers by rail or of other carriers on highway. 104 A.L.R. 1169.

39-12-14. Factors governing determination of just and reasonable rates — Burden of proof.

In the exercise of power to prescribe just and reasonable rates and charges for the transportation of property by common carriers by motor vehicle, and classifications, regulations, and practices relating thereto, and to disallow rates filed by any carriers, the administrator shall give due consideration, among other factors, to the inherent advantages of transportation by the carriers; to the effect of rates upon the movement of traffic by the carrier or carriers for which the rates are prescribed; to the need, in the public interest, of adequate and efficient transportation service of the carriers at the lowest cost consistent with the furnishing of the service; and to the need of revenues sufficient to enable the carriers under honest, economical, and efficient management to provide such service. In any proceeding to determine the justness and reasonableness of any rates or charges of any common carrier, there shall not be taken into consideration or allowed, as evidence or elements of value of the property of the carrier, either good will, earning power, or the certificate under which the carrier is operating. At any hearing involving a change in rates, charges, or classification, or in a rule, regulation, or practice, the burden of proof shall be upon the carrier to show that the proposed rule, changed rate, charge, classification, regulation, or practice is just and reasonable.

History of Section. G.L. 1938, ch. 99, art. 3, § 3; P.L. 1946, ch. 1805, § 1; G.L. 1956, § 39-12-13 ; G.L. 1956, § 39-12-14 ; P.L. 1958, ch. 87, § 1.

39-12-15. Filing of contracts by contract carriers — Form of contract.

Every contract carrier by motor vehicle shall file with the administrator a copy of every contract for the transportation of property by motor vehicle in effect in connection with its operations, which shall be in writing and shall be executed by all parties thereto. The period of time during which the contracts shall be in force; the charges for transportation and accessorial services, if any; and the duties and obligations of all parties thereto, shall be specifically stated in the contracts, and the copies shall be kept in the files of the administrator but not opened to public inspection.

History of Section. G.L. 1956, ch. 99, art. 4, § 5; P.L. 1946, ch. 1805, § 1; G.L. 1956, § 39-12-19 ; G.L. 1956, § 39-12-15 ; P.L. 1958, ch. 87, § 1; P.L. 1997, ch. 326, § 113.

Collateral References.

Motor carriers operating privately and contract motor carriers for hire, validity of rate regulations in statutes relating to use of highways by. 109 A.L.R. 561; 175 A.L.R. 1333.

Motor trucks or buses, jurisdiction of public service commission over rates of carriers transporting by. 1 A.L.R. 1460; 9 A.L.R. 1011; 51 A.L.R. 820; 103 A.L.R. 268.

39-12-16. Duty of contract carriers to establish reasonable rates — Publication of rate schedules — Rate discrimination — Rebates.

  1. It shall be the duty of every contract carrier by motor vehicle to establish and observe reasonable rates and charges for any service rendered or to be rendered in the transportation of property, and to establish and observe reasonable regulations and practices to be applied in connection with the reasonable rates and charges.
  2. It shall be the duty of every contract carrier by motor vehicle to publish; file with the administrator on not less than thirty (30) days’ notice; and keep open for public inspection in the form and manner prescribed by the administrator, schedules containing the actual rates and charges of the carrier, and any rule, regulation, or practice affecting the rates or charges, and the value of the service thereunder. A filing fee of fifty dollars ($50.00) must accompany all filings made pursuant to this section. All revenues received under this section shall be deposited as general revenues.
  3. No contract carrier shall engage in the transportation of property, unless the effective contract or contracts are in force, and a copy or copies filed with the administrator, and/or unless the actual charges for transportation by the carrier have been published, filed, and posted in accordance with the provisions of this chapter. No contract shall be filed nor reduction made in any charge, either directly or by means of any change in any rule, regulation, or practice affecting the charge or the value of the service under the contract, except after thirty (30) days’ notice of the proposed change filed in the manner and form as provided in subsection (b) of this section; provided, that the administrator may, in his or her discretion and for good cause shown, allow the change upon less notice, or may modify the requirements of this section with respect to the posting and filing of the schedules, either in particular instances or by general order, applicable to special or peculiar circumstances or conditions.
  4. The schedule of actual rates of every contract carrier shall contain a list of all parties with whom contracts are or may, from time to time, be in effect, without designation of the party for whom the motor carrier services are being or are to be performed.
  5. No carrier shall demand, or collect, or charge a less compensation for transportation than the charge contained in his or her written contract and published in his or her schedule of actual rates on file with the administrator, or prescribed after a hearing by the administrator; and it shall be unlawful for any contract carrier, by the furnishing of special services, facilities, or privileges, or by any other device whatsoever, to charge, accept, or receive less than the actual rates and charges so filed or prescribed. The charges of the contract carriers shall be no less than those of common carriers for substantially the same or similar service.

History of Section. P.L. 1935, ch. 2268, art. 4, § 5; G.L. 1938, ch. 99, art. 4, § 5; P.L. 1946, ch. 1805, § 1; G.L. 1956, §§ 39-12-20 , 39-12-21 ; G.L. 1956, § 39-12-16 ; P.L. 1958, ch. 87, § 1; P.L. 1992, ch. 133, art. 34, § 5; P.L. 1995, ch. 370, art. 40, § 118; P.L. 1996, ch. 316, § 1; P.L. 1997, ch. 326, § 113.

Collateral References.

Right of common or private carrier on highways to challenge rates of common carriers by rail or of other carriers on highways. 104 A.L.R. 1169.

39-12-17. Determination as to basis of contract rate.

Any party in interest, whether as a contract carrier, common carrier, shipper, or otherwise, may, at any time, by petition or complaint, have determined whether a rate or charge prescribed for the contract carrier by the administrator, after a hearing, is based upon or includes services that the contract carrier is not required to perform under his or her contract for services. No rates or charges for contract carriers shall be prescribed by the administrator except after a hearing, notice of which has been given to the contract carriers and common carriers affected thereby, and to the shippers or to the public served by the contract carriers and common carriers. Upon a petition of not less than ten (10) persons operating as common or contract carriers in any natural subdivision, the administrator, after a hearing, and after notice to members of the natural subdivision in writing, or by publication, as the administrator may determine, shall prescribe the rates and charges, which shall not be less than the cost of performing the service, to be thereafter charged by all carriers operating within the natural subdivision for the particular type of service described in the petition, but the rates and charges shall not apply to members of the subdivision performing services other than those described in the petition.

History of Section. P.L. 1935, ch. 2268, art. 4, §§ 6, 7; G.L. 1938, ch. 99, art. 4, §§ 6, 7; P.L. 1946, ch. 1805, § 1; G.L. 1956, §§ 39-12-22 , 39-12-23 ; G.L. 1956, § 39-12-17 ; P.L. 1958, ch. 87, § 1.

39-12-18. Revocation of common carrier certificate.

Any irregular- or regular-route common carrier who or that, during any period of not less than sixty (60) consecutive days, fails or has failed to render any part of the service authorized by the common carrier’s certificate, except that for the reason that highways over which the common carrier must operate are impassable because of floods, conditions of the highways, or other reasonable causes, shall be deemed to have abandoned that part of the service authorized by the certificate; and if, after a hearing, the administrator finds that the carrier has so failed to render service in accordance with the common carrier’s certificate and not for any reason set forth in the foregoing exceptions, the common carrier’s rights thereto to the extent of the common carrier’s failure to render service shall be forfeited; and the administrator shall revoke or reissue the common carrier’s certificate subject to the resulting limitations.

History of Section. P.L. 1958, ch. 87, § 1.

39-12-19. Revocation of contract carrier permit.

Any contract carrier by motor vehicle who, during any period of not less than one year, fails or has failed to render any part of the service authorized by the contract carrier’s permit, except for the reason that the highways over which the contract carrier must operate are impassable because of floods, conditions of the highways, or for other reasonable causes, shall be deemed to have abandoned that part of the service authorized by the contract carrier’s permit; and if, after a hearing, the administrator finds that the carrier has so failed to render service in accordance with the contract carrier’s permit, and not for any reason set forth in the foregoing exceptions, the contract carrier’s rights thereto, to the extent of the contract carrier’s failure to render service, shall be forfeited; and the administrator shall reissue the contract carrier’s permit subject to the resulting limitations.

History of Section. P.L. 1958, ch. 87, § 1.

39-12-20. Transfer of certificates or permits — Joint control of common carriers.

Any common-carrier certificate or any contract-carrier permit may be assigned and transferred, in whole or in part, by the holder thereof, his or her assignee, receiver, trustee, or by the holder’s personal representative, or by the surviving partner or partners of the deceased partner to which the rights and privileges under the certificate or permit shall pass at the death of the holder, upon his or her application to the administrator. The transfer and assignment must receive the consent and approval of the administrator, after public notice, in the manner provided in §§ 39-12-6 and 39-12-9 , and a public hearing, at which the proposed transferee shall have established to the satisfaction of the administrator his or her willingness, fitness, and ability to perform or furnish transportation for compensation under the certificate or permit. No certificate or permit may be transferred in part, unless the rights are clearly severable; and no certificate or permit shall be transferred, in whole or in part, except in connection with the bona fide sale to the transferee of the business of the transferor. The application shall be accompanied by a fee of two hundred and fifty dollars ($250). All revenues received under this section shall be deposited as general revenues. It shall be unlawful for any person to accomplish or effectuate or to participate in accomplishing or effectuating the control or management in a common interest of any two (2) or more common carriers, however such a result is attained, whether directly or indirectly, by use of common directors, officers, or stockholders, or in any manner whatsoever. As used in this section, the words “control and management” shall be construed to include the power to exercise control and management. The holder of either a common-carrier certificate or a contract-carrier permit shall not acquire the operating rights held by another person through a transfer proceeding unless, both operating rights are merged simultaneously and not until the application to transfer is approved by the administrator.

History of Section. P.L. 1935, ch. 2268, art. 5, § 1; G.L. 1938, ch. 99, art. 5, § 1; P.L. 1946, ch. 1805, § 1; G.L. 1956, § 39-12-26 ; G.L. 1956, § 39-12-20 ; P.L. 1958, ch. 87, § 1; P.L. 1967, ch. 209, § 3; P.L. 1980, ch. 339, § 1; P.L. 1992, ch. 133, art. 34, § 5; P.L. 1995, ch. 370, art. 40, § 118; P.L. 2007, ch. 73, art. 26, § 2; P.L. 2007, ch. 485, § 2.

39-12-21. Dual operations.

Persons holding a certificate as a common carrier may also perform as a contract carrier under the authority of certificate.

History of Section. G.L. 1938, ch. 99, art. 5, § 2; P.L. 1946, ch. 1805, § 1; G.L. 1956, § 39-12-27 ; G.L. 1956, § 39-12-21 ; P.L. 1958, ch. 87, § 1; P.L. 1993, ch. 409, § 1.

39-12-21.1. Filing of contracts.

Contracts entered into by a certified carrier shall be filed with the division of public utilities and carriers as part of the carrier’s tariffs and shall be subject to the division’s approval after public notification and public hearing by the division of public utilities and carriers as provided in this title.

History of Section. P.L. 1993, ch. 409, § 2.

39-12-22. Issuance of a permit to interstate carriers.

Every motor carrier engaged in transporting property over the highways of this state for compensation, in interstate commerce, shall file an application with the administrator for a permit of registration. The application shall be accompanied by a fee of twenty-five dollars ($25.00). Upon a showing by the carrier that it has been authorized by the Interstate Commerce Commission to conduct an operation into, from, within, or through this state, and that the carrier is in compliance with all other requirements of this chapter, the administrator shall issue a permit of registration to the carrier as soon as possible, and the carrier shall not so operate in interstate commerce unless and until the permit of registration shall have been issued. The motor carrier shall be required to file with the administrator only that portion of its interstate authority permitting operations within the borders of this state, and the motor carrier shall not be required to file with the administrator emergency or temporary operating authority having a duration of thirty (30) consecutive days or less, if the carrier has registered its interstate authority and registered and identified its vehicles under the provisions of this chapter. The administrator shall prescribe reasonable rules and regulations governing the registration of interstate authority. Every intrastate motor carrier holding either a common-carrier certificate or a contract-carrier permit from the administrator is hereby granted the right to operate motor vehicles in interstate commerce in the transportation of property for compensation, as authorized by the Interstate Commerce Commission, without obtaining an interstate permit of registration from the administrator.

History of Section. P.L. 1935, ch. 2268, art. 6, §§ 1, 2; G.L. 1938, ch. 99, art. 6, §§ 1, 2; P.L. 1945, ch. 1543, § 1; G.L. 1938, ch. 99, art. 6, § 3; P.L. 1946, ch. 1805, § 1; P.L. 1946, ch. 1805, § 1; G.L. 1956, §§ 39-12-28 39-12-30 ; G.L. 1956, § 39-12-22 ; P.L. 1958, ch. 87, § 1; P.L. 1960, ch. 71, art. 3, § 32; P.L. 1967, ch. 209, § 4; P.L. 1969, ch. 240, § 13; P.L. 1980, ch. 339, § 1; P.L. 1986, ch. 35, § 1.

39-12-23. Transfer of interstate carrier permit.

Any permit of registration may be assigned and transferred by the holder thereof, his or her assignee, receiver, trustee, or by the holder’s personal representative, or by the surviving partner or partners of the deceased partner to which the right under the permit shall pass at the death of the holder upon application to the administrator. The application shall be accompanied by a fee of fifty dollars ($50.00). The transferor shall establish before the administrator that the operating authority to engage in interstate commerce in transportation for compensation is to be or has been transferred with the approval of the Interstate Commerce Commission. The administrator may establish such reasonable rules and regulations as he or she may deem necessary pertaining to the transfer and assignment of permits of registration.

History of Section. P.L. 1958, ch. 87, § 1; P.L. 1967, ch. 209, § 5; P.L. 1980, ch. 339, § 1.

39-12-24. [Repealed.]

History of Section. G.L. 1938, ch. 99, art. 6, § 4; P.L. 1946, ch. 1805, § 1; G.L. 1956, § 39-12-31 ; G.L. 1956, § 39-12-24 ; P.L. 1958, ch. 87, § 1; Repealed by P.L. 1969, ch. 240, § 18.

Compiler’s Notes.

Former § 39-12-24 concerned reciprocal privileges.

39-12-25. Operation by fiduciary.

In the event of the decease, incompetency, insolvency, bankruptcy, or corporate reorganization under the bankruptcy law of the United States, of a holder of a certificate or permit that authorizes motor carrier operations in intrastate commerce under this chapter, the administrator, upon application or notification of his or her executor, administrator, guardian, conservator, assignee, trustee, or receiver, shall conditionally operate the certificate or permit as a fiduciary, pending the filing of an application to transfer the certificate or permit and pending the decision of the administrator as to the fitness, willingness, and ability of the transferee to conduct the operation or business authorized by the certificate or permit. In the event of the decease, incompetency, insolvency, or bankruptcy of a member of a partnership holding the certificate or permit, the administrator upon receipt of notification of the remaining partner or partners, or of the executor, administrator, guardian, conservator, assignee, trustee, or receiver of the deceased, incompetent, insolvent, or bankrupt partner, may make a like conditional transfer to the remaining partner or partners. Upon application of the executor, administrator, guardian, conservator, assignee, trustee, receiver, surviving, or remaining partner, the administrator may transfer the certificate or permit in accordance with the provisions of this chapter from the original holder to any person named in the application and approved by the administrator.

History of Section. P.L. 1958, ch. 87, § 1.

39-12-26. Registration and identification of vehicles.

Every interstate motor carrier engaged in the transportation of property for compensation over the highways of this state, subject to the provisions of this chapter, shall register and identify all vehicles to be operated in the state in accordance with the provisions contained in and mandated under the federal “Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users” (SAFETEA-LU) (Public Law 109-59, enacted August 10, 2005), the Unified Carrier Registration Act of 2005 (Included within SAFETEA-LU), and the Unified Carrier Registration Agreement (UCRA) (§§ 4302 — 4308 of SAFETEA-LU), and/or any related successor federal law(s). All intrastate carriers not subject to the provisions of the foregoing federal law shall apply to the administrator for the issuance of a vehicle identification device for the registration and identification of vehicles and shall be assessed twenty dollars ($20.00) for each identification device for which an application is made. All revenues received shall be deposited as general revenues. The identification device shall be furnished annually to every carrier whose duty it shall be to apply for it. It shall be unlawful for any motor vehicle to be engaged in transporting property for compensation in either intrastate or interstate commerce without the owner of it having applied for and received the required identification device, unless the vehicle is exempted from the provisions of this chapter. Each identification device shall be accompanied by a registration card issued by the administrator, which shall be in the possession of the vehicle’s driver when the vehicle is operating. Transfers of the identification device from one vehicle to another are hereby prohibited unless authorized by the administrator. The administrator, in his or her discretion, may refuse to reissue the identification device to the holder of any certificate, permit, or permit of registration, pending any complaint or hearing upon the question of revocation or suspension or in which such question is involved. The administrator shall prescribe reasonable rules and regulations governing the registration and identification of motor vehicles authorized for operation under this chapter. Violations of this section are subject to fines enumerated in § 31-41.1-4 .

History of Section. P.L. 1935, ch. 2268, art. 5, § 1; G.L. 1938, ch. 99, art. 5, § 11; P.L. 1946, ch. 1805, § 1; G.L. 1956, § 39-12-25 ; G.L. 1956, § 39-12-26 ; P.L. 1958, ch. 87, § 1; P.L. 1960, ch. 71, art. 3, § 32; P.L. 1967, ch. 209, § 6; P.L. 1969, ch. 240, § 13; P.L. 1980, ch. 339, § 1; P.L. 1987, ch. 508, § 1; P.L. 1988, ch. 129, art. 8, § 1; P.L. 1992, ch. 133, art. 34, § 5; P.L. 1995, ch. 370, art. 40, § 118; P.L. 2002, ch. 292, § 129; P.L. 2007, ch. 73, art. 26, § 2; P.L. 2007, ch. 485, § 2.

Federal Act References.

For the Unified Carrier Registration System plan and agreement, referred to in this section, see 49 U.S.C. §§ 14504a, 14506.

39-12-27. Security for protection of the public.

No certificate or permit shall be issued to a motor carrier or remain in force, unless the carrier shall have furnished the administrator with evidence of insured financial responsibility. Each motor carrier shall satisfy the requirements by furnishing the administrator with proof of the carrier’s ability to meet any and all legally established claim or claims for damages by reason of personal injury to, or the death of, any one person in an amount of at least two hundred and fifty thousand dollars ($250,000), or by reason of personal injuries to, or the death of, all persons injured or killed in any one accident of five hundred thousand dollars ($500,000) (subject to a maximum of two hundred and fifty thousand dollars ($250,000) for bodily injuries to or the death of one person), and for damages to property (excluding cargo) in the amount of at least twenty-five thousand dollars ($25,000). A filing fee of ten dollars ($10.00) must accompany each insurance filing. All revenues received under this section shall be deposited as general revenues. No common or contract carrier by motor vehicle shall engage in intrastate commerce, nor shall any certificate or permit be issued to the carrier or remain in force, unless and until there shall be filed with the administrator evidence of insured financial responsibility by the carriers to meet any and all legally established claim or claims for loss or damage to all property belonging to the shipper or consignee and coming into possession of the carriers in connection with their motor carrier transportation service in an amount of at least twenty-five thousand dollars ($25,000); provided, however, that the requirements of this section shall not apply in connection with the transportation of commodities declared by the administrator, after notice and hearing, to be exempt from cargo insurance requirements. Each motor carrier required by the provisions of this chapter to furnish evidence of insured financial responsibility shall satisfy such requirements by filing with the administrator:

  1. A certificate of insurance issued by an insurance company authorized to transact business in this state, showing that the motor carrier has a policy of insurance in force insuring the carrier against public liability, property damage, and damage or loss to cargo, in at least the minimum amounts herein prescribed; or
  2. A certificate on blanks furnished by the administrator and issued by the general treasurer that the motor carrier has filed with the general treasurer a bond in the amount of one hundred thousand dollars ($100,000), issued by a surety company authorized to transact business in Rhode Island and conditioned upon payment of any sum up to and including the maximum amounts required in this section in the satisfaction of any final judgment rendered as the result of any claim, or claims, for damages against the motor carrier. The administrator will give consideration to and will approve the application of a motor carrier to qualify as a self-insurer in lieu of the insurance prescribed in this section, if the carrier furnishes a true and accurate statement of its financial condition and other evidence as will establish to the satisfaction of the administrator the ability of the motor carrier to satisfy its obligations for liability and bodily injury or death and liability for the property damage in the minimum amounts prescribed therein without affecting the stability or permanency of the business of the motor carriers. All certificates of insurance, surety bonds, and other securities and agreements filed with the administrator must show the coverage effective continuously until canceled. Certificates of insurance, surety bonds, and other securities and agreements shall not be canceled or withdrawn until after thirty (30) days’ notice in writing by the insurance company, surety or sureties, motor carrier, or other party thereto, as the case may be, has first been given to the administrator at his or her office in Providence, which period of time shall commence to run from the date the notice is actually received at the office of the administrator. However, the surety bonds, certificates of insurance, and other securities and agreements may be canceled prior to the expiration of the thirty (30) days, if on or before the date notice of cancellation is received at the office of the administrator, a replacement filing acceptable to the administrator shall have been received, the replacement being effective on or before the effective date of the cancellation. No cancellation may become effective before the date of receipt of the notice by the administrator.

History of Section. P.L. 1935, ch. 2268, art. 7, § 2; G.L. 1938, ch. 99, art. 7, § 2; P.L. 1946, ch. 1805, § 1; G.L. 1956, § 39-12-33 ; G.L. 1956, § 39-12-27 ; P.L. 1958, ch. 87, § 1; P.L. 1979, ch. 341, § 1; P.L. 1992, ch. 133, art. 34, § 5; P.L. 1995, ch. 370, art. 40, § 118; P.L. 1997, ch. 326, § 113.

Cross References.

Exemption from general financial responsibility law, § 31-32-11 .

Collateral References.

Validity, construction, and effect of provision in shipping contract or bill of lading that carrier shall have benefit of shipper’s insurance against loss of or damage to shipment. 27 A.L.R.3d 984.

39-12-27.1. Advertisements by transporters of household goods.

  1. Every motor carrier engaged in the transportation of household goods between points within the state including a carrier providing a service incidental to or part of the intrastate transportation shall include and shall require each of its agents to include in every advertisement as defined in this section, the name or trade name of the motor carrier under whose operating authority the advertised service will originate and the certificate of public convenience number or permit number issued to the operating authority by the public utilities commission.
  2. As used in this section, “advertisement” shall mean any written or printed communication to the public in connection with an offer or sale of any intrastate transportation service but not including the name, address, and telephone number of the carrier.

History of Section. P.L. 1990, ch. 92, § 1; P.L. 1997, ch. 326, § 113.

39-12-28. Bill of lading requirements — Liability for damages.

Any common carrier subject to the provisions of this chapter, receiving property for transportation between points within this state, shall issue a receipt or bill of lading therefor, and shall be liable to the lawful holder thereof for any loss, damage, or injury to the property caused by it or by any other common carrier to which the property may be delivered or over whose line or lines the property may pass within this state when transported on a through bill of lading, and any common carrier so receiving property for transportation between points within this state or any common carrier delivering the property so received and transported shall be liable to the lawful holder of the receipt or bill of lading or to any party entitled to recover thereon, whether the receipt or bill of lading has been issued or not, for the actual loss, damage, or injury to the property caused by it or by any common carrier to which the property may be delivered or over whose line or lines the property may pass within this state when transported on a through bill of lading notwithstanding any limitation of liability or limitation of the amount of recovery or representation or agreement as to value in any receipt or bill of lading, or any contract, rule, regulation, or in any tariff filed with the administrator; and the limitation without respect to the manner or form in which it is sought to be made is hereby declared to be unlawful and void; provided, however, that the provisions hereof respecting liability for full actual loss, damage, or injury, notwithstanding any limitation of liability or recovery or representation or agreement or release as to value and declaring any limitation to be unlawful and void, shall not apply to property received for transportation concerning which the motor carrier shall have been or shall hereafter be expressly authorized or required by order of the administrator to establish and maintain rates dependent upon the value declared in writing by the shipper or agreed upon in writing as the released value of the property, in which case the declaration or agreement shall have no other effect than to limit liability and recovery to an amount not exceeding the value so declared or released; and any tariff or schedule which may be filed with the administrator pursuant to the order shall contain specific reference thereto and may establish rates varying with the value so declared and agreed upon; and the administrator is hereby empowered to make the order in cases where rates dependent upon and varying with declared or agreed value would, in his or her opinion, be just and reasonable under the circumstances surrounding the transportation; provided, further, that nothing in this chapter shall deprive any holder of a receipt or bill of lading of any remedy or right of action which he or she has under existing law; provided, further, that it shall be unlawful for any motor common carrier to provide by rule, contract, regulation, or otherwise, a shorter period for the filing of claims than nine (9) months, and for the institution of suits than two (2) years, the period for institution of suits to be computed from the day when notice in writing is given by the carrier to the claimant that the carrier has disallowed the claim or any part or parts thereof specified in the notice; and, provided, further, that the liability imposed in this section shall also apply to property reconsigned or diverted in accordance with the applicable tariff filed as in this chapter provided. The common carrier issuing the receipt or bill of lading, or delivering the property so received and transported, shall be entitled to recover from the common carrier over whose lines the loss, damage, or injury shall have been sustained, the amount of the loss, damage, or injury as it may be required to pay to the owners of the property, as may be evidenced by any receipt, judgment, or transcript thereof, and the amount of any expense reasonably incurred by it in defending the action at law brought by the owners of the property.

History of Section. P.L. 1958, ch. 87, § 1; P.L. 1979, ch. 341, § 1.

Collateral References.

Allowance of attorney’s fees in shipper’s action against carrier for loss of, or damage to, interstate shipment. 37 A.L.R.3d 1125.

Liability of carrier for delivering goods sent C.O.D. without receiving cash payment. 27 A.L.R.3d 1320.

39-12-29. Agent for service of process, notices, or orders on interstate carriers.

Every motor carrier of property operating in interstate commerce over the highways of this state, in the transportation of property for compensation, shall file with the administrator a designation in writing of the name and post office address of a person in this state upon whom or which service of process, notices, or orders may be made.

History of Section. P.L. 1958, ch. 87, § 1.

39-12-30. Accounts, records, and reports.

The administrator is hereby authorized to require annual, periodical, or special reports from all motor carriers, subject to the provisions of this chapter; to prescribe the manner and form in which the reports shall be made; and to require from the carriers specific and full, true, and correct answers to all questions upon which the administrator may deem information to be necessary. The annual reports shall give an account of the affairs of the carrier in such form and detail as may be prescribed by the administrator.

History of Section. P.L. 1958, ch. 87, § 1.

39-12-31. Employment of personnel.

The administrator is hereby authorized to employ such clerical force and inspectors as shall be necessary to enforce and carry into effect the provisions of this chapter within his or her appropriation.

History of Section. P.L. 1935, ch. 2268, art. 9, § 2; P.L. 1936 (s. s.), ch. 2462, § 1; G.L. 1938, ch. 99, art. 9, § 2; G.L. 1938, ch. 99, art. 9, § 3; P.L. 1946, ch. 1805, § 1; G.L. 1956, § 39-12-40 ; G.L. 1956, § 39-12-31 ; P.L. 1958, ch. 87, § 1.

39-12-32. Enforcement powers of inspectors.

Examiners, field investigators, hearing officers, regulatory inspectors, and other employees of the division designated by the administrator with respect to the enforcement of the provisions of this chapter, shall have and exercise, throughout this state, all powers of police officers, including the power to arrest, without warrant, any person who violates any provision of this chapter, and the agents may serve all process lawfully issued by the administrator. Whenever a complaint is made of any violation of the provisions of this chapter by any examiner, field investigator, hearing officer, regulatory inspector, or any other employee of the division designated by the administrator to enforce the provisions of this chapter, he or she shall not be required to furnish surety for costs or be liable for costs upon any complaint.

History of Section. P.L. 1935, ch. 2268, art. 9, § 2; P.L. 1936 (s. s.), ch. 2462, § 1; G.L. 1938, ch. 99, art. 9, § 2; G.L. 1938, ch. 99, art. 9, § 3; P.L. 1946, ch. 1805, § 1; G.L. 1956, §§ 39-12-41, 39-12-42; G.L. 1956, § 39-12-32 ; P.L. 1958, ch. 87, § 1; P.L. 1967, ch. 209, § 7.

39-12-33. Enforcement by police departments.

The administrator is hereby authorized to avail himself or herself of such state, city, and town police departments as are or may hereafter be existing by law, to enforce the provisions of this chapter and the rules, regulations, and orders of the administrator made under this chapter; and the police departments are hereby given the necessary authority and power, in addition to those they now possess, to carry into effect the directions of this section.

History of Section. P.L. 1935, ch. 2268, art. 9, § 3; G.L. 1938, ch. 99, art. 9, § 3; G.L. 1938, ch. 99, art. 9, § 2; P.L. 1946, ch. 1805, § 1; G.L. 1956, § 39-12-43 ; G.L. 1956, § 39-12-33 ; P.L. 1958, ch. 87, § 1; P.L. 1997, ch. 326, § 113.

Collateral References.

Validity of police roadblocks or checkpoints for purpose of discovery of alcoholic intoxication — Post-Sitz cases. 74 A.L.R.5th 319.

Validity of police roadblocks or checkpoints for purpose of discovery of illegal narcotics violations. 82 A.L.R.5th 103.

39-12-34. Self-incrimination — Immunity from prosecution.

No person shall be excused from testifying or from producing any books, accounts, records, memoranda, correspondence, or other documents in any investigation or inquiry by or upon any hearing before the administrator, when ordered to do so by the administrator, upon the ground that the testimony or evidence, books, accounts, records, memoranda, correspondence, or other documents required of him or her may tend to incriminate him or her or subject him or her to penalties or forfeitures; but no person shall be prosecuted, punished, or subjected to any penalty or forfeiture for or on account of any act, transaction, matter, or thing concerning which he or she shall, under oath, by order of the administrator, have testified or produced documentary evidence; provided, that no person so testifying shall be exempt from prosecution or punishment for any perjury committed by him or her in his or her testimony. Nothing in this section is intended to give or shall be construed as in any manner giving any corporation immunity of any kind from the law.

History of Section. P.L. 1958, ch. 87, § 1; P.L. 1997, ch. 326, § 113.

NOTES TO DECISIONS

No Privilege.

R.I. Gen. Laws §§ 39-4-21 and 39-12-34 provide that no person shall be criminally prosecuted for any incriminating statements made before a Division of Public Utilities and Carriers of the State of Rhode Island hearing unless that witness has committed perjury; where there was no evidence that an officer of a water transport company was committing perjury, the officer had no right to invoke the Fifth Amendment privilege against self-incrimination. Interstate Navigation Co. v. Div. of Pub. Utils. & Carriers of R.I., 824 A.2d 1282, 2003 R.I. LEXIS 167 (2003).

39-12-35. Orders, rules, and regulations — Suspension or revocation of certificate or permits.

Every person, subject to the provisions of this chapter, shall be subject to such reasonable orders, rules, and regulations as shall, after a public hearing, be adopted and promulgated by the administrator. For willful or continued failure to comply with orders, rules, and regulations, or for willful or continued failure to comply with the terms and conditions of any certificate or permit granted under this chapter or previous laws, the administrator, after notice and hearing, or after failure to appear at a hearing of which due notice has been given, may suspend or modify or revoke the permit or certificate, subject however, to the right of appeal as to the reasonableness and lawfulness of the suspension or revocation or modification to the public utility hearing board as provided in chapter 35 of title 42.

History of Section. P.L. 1935, ch. 2268, art. 7, § 1; G.L. 1938, ch. 99, art. 7, § 1; P.L. 1946, ch. 1805, § 1; G.L. 1956, § 39-12-32 ; G.L. 1956, § 32-12-35; P.L. 1958, ch. 87, § 1.

NOTES TO DECISIONS

Specific Cases.

The Division of Public Utilities and Carriers was correct in determining that the towing license was properly revoked following the company’s failure to notify the owners of towed vehicles as required by division regulation. Rocha v. State PUC, 694 A.2d 722, 1997 R.I. LEXIS 192 (1997).

39-12-36. Unlawful operations — Penalty.

  1. Any person, subject to the provisions of this chapter, who shall knowingly or willfully cause to be done any act prohibited by this chapter, or who shall be guilty of any violation of this chapter for which no penalty is otherwise provided, shall be guilty of a misdemeanor; and shall, upon conviction thereof, be subject to a fine not to exceed one thousand dollars ($1,000) or imprisonment for a term not exceeding one year, or both for each offense.
  2. The administrator may in his or her discretion in lieu of seeking criminal sanctions, impose upon its regulated common or contract carriers an administrative civil penalty (fine) in lieu of revoking or suspending the carrier’s operating authority as conferred under this chapter. The fine shall not exceed one thousand dollars ($1,000) per each violation of the sections contained in this chapter or the division’s rules and regulations promulgated thereunder.

History of Section. P.L. 1935, ch. 2268, art. 8, § 1; G.L. 1938, ch. 99, art. 8, § 1; P.L. 1946, ch. 1805, § 1; G.L. 1956, § 39-12-35 ; G.L. 1956, § 39-12-36 ; P.L. 1958, ch. 87, § 1; P.L. 1991, ch. 44, art. 11, § 1; P.L. 1993, ch. 446, § 1.

39-12-37. Rebate, concession, discrimination, or fraudulent evasion of regulation.

Any person, whether carrier, shipper, consignee, or any officer, employee, agent, or representative thereof who:

  1. Shall knowingly offer, grant, or give or solicit, accept, or receive any rebate, concession, or discrimination in violation of any provisions of this chapter; or
  2. Who by means of any false statement or representation, or by use of any false or fictitious bill, bill of lading, receipt, voucher, roll, account, claim, certificate, affidavit, disposition, lease, or bill of sale, or by any other means or device, shall knowingly and willfully assist, suffer, or permit any person or persons to obtain transportation of property subject to this chapter for less than the applicable rate of charge; or
  3. Who shall knowingly and willfully, by any means or otherwise, fraudulently seek to evade or defeat regulation as in this chapter provided for motor carriers;

    shall be guilty of a misdemeanor, and upon conviction thereof, be fined not more than three hundred dollars ($300) or by imprisonment for a term not exceeding one year, or both.

History of Section. P.L. 1935, ch. 2268, art. 8, §§ 2 — 4; G.L. 1938, ch. 99, art. 8, §§ 2 — 4; P.L. 1946, ch. 1805, § 1; G.L. 1956, §§ 39-12-36 39-12-38 ; G.L. 1956, § 39-12-37 ; P.L. 1958, ch. 87, § 1.

NOTES TO DECISIONS

Applicability.

City’s request for proposals requiring towing companies to remit a referral fee to the city was invalid because such a referral fee violated R.I. Gen. Laws § 39-12-12 , and would have exposed the carrier to the sanctions set forth in R.I. Gen. Laws § 39-12-37 . Grasso Serv. Ctr. v. Sepe, 962 A.2d 1283, 2009 R.I. LEXIS 13 (2009).

39-12-38. Unauthorized divulging of information by administrator’s personnel.

Any examiner, investigator, hearing officer, accountant, regulatory inspector, or field investigator, who shall knowingly and willfully divulge any facts or information that may come to his or her knowledge during the course of any examination or inspection made under authority of § 39-12-5 , except as he or she may be directed by the administrator or by a court or judge thereof, shall be guilty of a misdemeanor and shall be subject, upon conviction, to a fine of not more than five hundred dollars ($500) or imprisonment not exceeding one year.

History of Section. P.L. 1958, ch. 87, § 1.

39-12-38.1. Records and abstract of cases.

A full record shall be kept by every court in this state of every case in which a person is charged with violation of any provision of this chapter, and an abstract of the record shall be sent by the court to the administrator within ten (10) days of the time when the case is disposed of. The abstract shall be made upon forms prepared by the administrator and shall include all necessary information as to the parties to the cause; the nature of the offense; the date of the hearing; the plea; the decision; the judgment and result; and every abstract shall be certified by the clerk of the court.

History of Section. P.L. 1967, ch. 209, § 8.

39-12-39. Annual appropriations.

The general assembly shall annually appropriate such sums as it may deem necessary to carry out the provisions of this chapter, and in so doing shall take into consideration the fees collected under this chapter.

History of Section. G.L. 1938, ch. 99, art. 9, § 1; P.L. 1946, ch. 1805, § 1; G.L. 1956, § 39-12-39 ; P.L. 1958, ch. 87, § 1; P.L. 1997, ch. 326, § 113.

39-12-40 — 39-12-42. [Repealed.]

Repealed Sections.

Section 39-12-40 (P.L. 1958, ch. 87, § 1) and §§ 39-12-41 and 39-12-42 (as enacted by the 1969 reenactment), concerning appeal to the public utility hearing board and appeal to the supreme court, were repealed by P.L. 1969, ch. 240, § 18. For present provisions of law, see chapter 5 of this title.

39-12-43. Severability.

If any provision of this chapter, or of any rule, regulation, or order made thereunder, or the application thereof to any persons or circumstances is held invalid by a court of competent jurisdiction, the remainder of this chapter, rule, regulation, or order, and the application of the provision to other persons or circumstances shall not be affected thereby. The invalidity of any section or sections or parts of any section or sections of this chapter shall not affect the validity of the remainder of this chapter; and it is hereby declared to be the legislative intent that this chapter would have been enacted if the invalid parts had not been included therein.

History of Section. P.L. 1935, ch. 2268, art. 10, §§ 1, 2; G.L. 1938, ch. 99, art. 10, §§ 1, 2; P.L. 1946, ch. 1805, § 1; G.L. 1956, § 39-12-44 ; G.L. 1956, § 39-12-43 ; P.L. 1958, ch. 87, § 1.

39-12-44. [Obsolete.]

Reenactments.

The 1984 Reenactment (P.L. 1984, ch. 81, § 1) deemed this section (G.L. 1956, § 39-12-44 ; P.L. 1958, ch. 87, § 1) to be obsolete.

Chapter 12.1 The Towing Storage Act

39-12.1-1. Declaration of purpose and policy.

The legislature hereby finds the following legislation to be in the public interest for these reasons:

WHEREAS, A tow truck in the hands of an incompetent operator is a dangerous instrumentality; and

WHEREAS, The public has an inherent right to ready access to the name, location, and telephone number of certificated towers; and

WHEREAS, The operation of a tow truck on the public highway with a vehicle in tow is a dangerous instrumentality exposing others on or about the highway to loss or damage, which must be covered by adequate insurance; and

WHEREAS, The motoring public has a right, when delegating to law enforcement the selection of an operator in the towing-storage business, to expect that the operator selected and responding will be competent; and

WHEREAS, The motoring public has a right when delegating to law enforcement the selection of an operator in the towing-storage business, to expect that the charges for the services to be rendered will be reasonable and compensatory, and that the operator is physically equipped in his or her business to function properly; and

WHEREAS, The towing and storage of a vehicle without the owner’s consent, as is the case in most police-instigated tows, requires certain procedures to assure the owner that rights of due process of law are not violated; and

WHEREAS, The owner or person in control of private property of real estate has a right to be free from trespass by vehicle on the private property; and to have any trespassing vehicle removed at the owner’s expense; and

WHEREAS, The police powers delegated by the legislature of the state include the power of the police, even without the owner’s consent, to have public ways cleared of conditions that, in the opinion of the officer, create a hazardous condition to the motoring public; to have removed abandoned, abandoned and of no value, and unattended vehicles; to have removed and/or relocated vehicles in violation of parking ordinances; and to have removed any vehicle under control of any person arrested for any criminal offense; and

WHEREAS, The process of selection of the operator of a towing-storage business for police work is unique in that law enforcement, though having the legal duty to order the work, has no legal duty to pay costs and charges connected therewith, the same being the duty of the vehicle owner.

History of Section. P.L. 1994, ch. 328, § 1; P.L. 2006, ch. 216, § 14.

NOTES TO DECISIONS

In General.

City’s request for proposals requiring towing companies to remit a referral fee to the city was invalid because enforcement of the Towing Storage Act, R.I. Gen. Laws tit. 39, ch. 12.1, rested with the state Division of Public Utilities and there was no transfer or delegation of that authority to the cities and towns; further, R.I. Gen. Laws § 39-12-12 contained language that prohibited a towing company from refunding or remitting, in any manner, any portion of its fee. Thus, state law explicitly prohibited towing companies from both refunding money to a customer and from transmitting any portion of the rates or charges to anyone in any manner, including the person or entity that selected the tow company. Grasso Serv. Ctr. v. Sepe, 962 A.2d 1283, 2009 R.I. LEXIS 13 (2009).

39-12.1-2. Definitions.

As used in this chapter, the following words shall have the meaning as set forth in this section.

  1. “Abandoned vehicle” means (i) A vehicle that is inoperable and more than eight (8) years old and is left unattended on public property for more than forty-eight (48) hours; or (ii) A vehicle that has remained illegally on public property for a period of more than three (3) days; or (iii) A vehicle that has remained on private property without the consent of the owner or person in control of the property for more than three (3) days.
  2. “Abandoned vehicle of no value” means (i) a motor vehicle that is inoperable and more than ten (10) years old and is left unattended on public property for more than forty-eight (48) hours; or (ii) A vehicle that has remained illegally on public property for a period of more than three (3) days; or (iii) A vehicle that has remained on private property without the consent of the owner or person in control of the property for more than three (3) days, and meets the following criteria:
    1. The vehicle has no evidence of current registration in or upon the vehicle; and
    2. The vehicle has a fair market value of five hundred dollars ($500) or less; and
    3. The vehicle does not have a valid inspection sticker.
  3. “Certificated tower” means a carrier possessing a certificate of public convenience and necessity issued by the public utilities administrator for the purpose of transporting vehicles by tow-away method.
  4. “Legal owner” means the person who has obtained ownership of a vehicle by any legal means but has not caused the vehicle to be registered with the division of motor vehicles.
  5. “Police department” means the police department of a city or town or the Rhode Island state department.
  6. “Possessory lien” means the right to retain possession of a vehicle and motor vehicle registration plates against all claims of the owner and/or security lien or until all charges are paid for recovery, towing, storage in accordance with the certificated tower’s tariff.
  7. “Private trespass” means the unattended presence of a vehicle on private property without the consent of the owner or person in control thereof.
  8. “Registered owner” means the person recorded in the division of motor vehicles as being the one to whom the registration of the vehicle was issued.
  9. “Tow truck” means any motor vehicle designed and/or ordinarily used for the purpose of towing or removing vehicles or assisting disabled motor vehicles.
  10. “Unattended vehicle” means any vehicle other than an “abandoned vehicle” or “abandoned vehicle of no value” that meets the following criteria:
    1. Left unoccupied in a place or for a time period prohibited by law or municipal ordinance or so as to cause traffic congestion or hazard; or
    2. From which the operator or owner thereof has been removed by any member of a police department in the performance of his or her official duties; or
    3. Left on public or private property without the consent of the owner or person in control thereof, or one having the exclusive right to the use thereof.
  11. “Vehicle” means any motor vehicle as defined in § 39-12-2 .
  12. “Vehicle survey report” means a report printed in the form provided in § 31-42-1(f) .

History of Section. P.L. 1994, ch. 328, § 1.

39-12.1-3. Removal of abandoned, abandoned and of no value, and unattended vehicles.

  1. Any member of any police department or the owner or person in control of private property may order the removal of any abandoned or unattended vehicle, or any member of any police department, upon completion of a vehicle survey report, as defined in this chapter, may order the removal of any abandoned vehicle of no value by a certificated tower and may instruct the certificated tower to remove the vehicle to its own place of storage.
  2. The last registered owner and/or the legal owner, or the person who left a vehicle in a position so that the vehicle becomes abandoned, abandoned and of no value, or unattended shall be liable for all reasonable costs of recovery, towing, and storage in accordance with the certificated tower’s tariff.
  3. Any member of a police department observing a vehicle on or near a public way that appears to be abandoned, abandoned and of no value, or unattended shall tag the vehicle by affixing securely to the vehicle a colored form or by using an easily observable sticker. The tag or sticker shall show:
    1. The date and time of tagging, and the name and telephone number of the police department;
    2. That the vehicle will be removed pursuant to this chapter unless the vehicle is removed after forty-eight (48) hours; provided, however, the police officer may order the immediate removal of the vehicle without prior tagging as provided in this section if it is parked illegally, causes traffic congestion or hazard, or when the operator is not allowed to continue to operate the vehicle after having been detained for operating in violation of the law.
  4. No person in possession of a vehicle that, in the opinion of the police officer in charge of the scene, needs to be removed to another location, shall be denied the right to have any certificated tower of his or her choice attend to the removal; provided, however, that allowing the choice of certificated tower does not cause a continuation of traffic congestion or of a hazardous condition on the highway that the police officer is able to eliminate by other means. When the hazardous condition has been eliminated, the person’s choice shall be employed to remove the vehicle to the place selected by the person in possession.

History of Section. P.L. 1994, ch. 328, § 1; P.L. 1997, ch. 326, § 114.

NOTES TO DECISIONS

Enforcement by Cities.

City’s request for proposals requiring towing companies to remit a referral fee to the city was invalid because enforcement of the Towing Storage Act, R.I. Gen. Laws tit. 39, ch. 12.1, rested with the state Division of Public Utilities and there was no transfer or delegation of that authority to the cities and towns; further, R.I. Gen. Laws § 39-12-12 contained language that prohibited a towing company from refunding or remitting, in any manner, any portion of its fee. Thus, state law explicitly prohibited towing companies from both refunding money to a customer and from transmitting any portion of the rates or charges to anyone in any manner, including the person or entity that selected the tow company. Grasso Serv. Ctr. v. Sepe, 962 A.2d 1283, 2009 R.I. LEXIS 13 (2009).

39-12.1-4. Notice and processing of abandoned and unclaimed motor vehicles by certificated tower.

  1. A certificated tower removing an abandoned or unattended vehicle shall notify within two (2) hours thereof, the police department of the city or town from which the vehicle is towed, and shall provide:
    1. The year, make, model, and serial number of the vehicle;
    2. The name, address, and telephone number of the certificated tower; and
    3. The street address or location from which the vehicle was towed.
  2. A certificated tower removing an abandoned or unattended vehicle shall notify within fourteen (14) days thereof, by registered mail, return receipt requested, the last-known registered owner of the vehicle and all lienholders of record at the address shown in the records of the appropriate registry in the state in which the vehicle is registered that the vehicle has been taken into custody. The notice shall be substantially in the form provided in § 39-12.1-13 and shall describe:
    1. The year, make, model, and serial number of the vehicle;
    2. The name, address, and telephone number of the certificated tower;
    3. That the vehicle is in the possession of that certificated tower;
    4. That recovery, towing, and storage charges are accruing as a legal liability of the registered and/or legal owner;
    5. That the certificated tower claims a possessory lien for all recovery, towing, and storage charges;
    6. That the registered and/or legal owner may retake possession at any time during business hours by appearing, proving ownership, and paying all charges due the certificated tower pursuant to its published tariff;
    7. That should the registered and/or legal owner consider that the original taking was improper or not legally justified, he or she has a right to file an administrative complaint pursuant to chapter 12 of this title to contest the original taking;
    8. That if no claim is filed and the vehicle is not claimed and possession retaken or arranged for within thirty (30) days of the mailing of the notice, the lien will be foreclosed and the vehicle will be sold at public auction;
    9. That the proceeds of the sale shall be first applied to recovery, towing, and storage charges with any excess proceeds being deposited as provided in accordance with § 39-12.1-9(d)(3) ;
    10. That any recovery, towing, and storage charges in excess of the sale proceeds shall remain as a civil obligation of the registered and/or legal owner.
  3. If the identity of the last registered owner cannot be determined from the records of the appropriate registry in the state in which the vehicle is registered, or if the registration contains no address for the ownership, or if it is impossible to determine with reasonable certainty the identity and addresses of all lienholders, notice by one publication in one newspaper of general circulation in the area where the vehicle was abandoned or left unattended shall be sufficient to meet all requirements of notice pursuant to this chapter. A notice by publication may contain multiple listings of abandoned or unattended vehicles. Any notice by publication shall be within the time requirements prescribed for notice by registered mail and shall have the same contents required for a notice by registered mail.

History of Section. P.L. 1994, ch. 328, § 1; P.L. 1997, ch. 326, § 114; P.L. 2004, ch. 294, § 1; P.L. 2004, ch. 489, § 1; P.L. 2020, ch. 79, art. 1, § 6.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

39-12.1-5. Special procedure regarding certain abandoned vehicles.

  1. If an abandoned, abandoned and of no value, or unattended vehicle, as defined in § 39-12.1-2 , is at least ten (10) years old or less than ten (10) years old and has an altered vehicle identification number; has not been registered within one year; has no established fair market value; and would not pass a safety inspection pursuant to chapter 38 of title 31, a certificated tower shall not be required to comply with the provisions of § 39-12.1-4 .
  2. If a police department takes possession or orders the removal of a vehicle that meets the requirements of this section, the police department shall request that the state police conduct a computer search to determine if the vehicle is a stolen vehicle. The police department shall remove the vehicle identification number from the vehicle and shall maintain a record of all numbers removed from vehicles for a period of two (2) years.
  3. A police department that complies with the provisions of this section may dispose of the vehicle in accordance with the provisions of § 39-12.1-9 five (5) days after the removal of the vehicle identification number.

History of Section. P.L. 1994, ch. 328, § 1; P.L. 1997, ch. 326, § 114; P.L. 2020, ch. 79, art. 1, § 6.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

39-12.1-6. Possessory lien.

Any certificated tower coming into possession of a vehicle in any lawful manner shall have a possessory lien on the vehicle and registration plates, so long as it retains possession, and if it has conformed in full with the provisions of §§ 39-12.1-4 and 39-12.1-8 . The lien shall be in an amount in accordance with its published tariff.

History of Section. P.L. 1994, ch. 328, § 1.

39-12.1-7. Thirty (30) day waiting period.

Any certificated tower in possession of any vehicle subject to a possessory lien for a period in excess of thirty (30) consecutive days, and not having been compensated in accordance with its published tariff, is authorized to give notice and proceed to foreclosure as provided in §§ 39-12.1-8 and 39-12.1-9 .

History of Section. P.L. 1994, ch. 328, § 1.

39-12.1-8. Notice prior to enforcement of possessory lien.

  1. Prior to enforcement of its possessory lien as provided in § 39-12.1-9 , the certificated tower shall give notice by registered mail, return receipt requested, to the last-known registered owner and all known lienholders of record, at the address shown on the records of the appropriate registry, in the state of which the vehicle is registered, substantially in the form provided in § 39-12.1-14 , stating:
    1. That no complaint having been filed and that the vehicle has not been claimed or possession retaken or arranged for within thirty (30) days of the notice given pursuant to § 39-12.1-4 ;
    2. That the certificated tower claims a possessory lien for all recovery, towing, and storage charges;
    3. That the registered and/or legal owner may retake possession at any time during business hours by appearing, proving ownership, and paying all charges due the certificated tower pursuant to its published tariff;
    4. That if the vehicle is not claimed and possession retaken, or arranged for, within ten (10) days of the mailing of the notice, the lien will be foreclosed and the vehicle will be sold at public auction;
    5. The date, time, and place at which the public auction shall occur; and
    6. That any charges in excess of the sale proceeds shall remain as a civil obligation of the owner.
  2. If the identity of the last-known registered owner and/or the lienholders cannot be determined by a request to the appropriate registry in the state in which the vehicle is registered, notice by the certificated tower pursuant to § 39-12.1-4(b) shall be sufficient notice prior to foreclosure of the possessory lien; provided, however, in such instance, no such foreclosure shall occur prior to sixty (60) days after the date of notice by the certificated tower.
  3. During the sixty-day (60) period described in subsection (b) of this section, provided for in § 39-12.1-9(a) , should the last registered and/or legal owner receive actual notice containing the items referred to in subsection (a) of this section, the certificated tower may proceed with lien foreclosure procedures set forth in this chapter.
  4. Notwithstanding the fact that the last-registered owner of the vehicle proves that the vehicle has been sold to another owner but that the registration has not been transferred, the last-registered owner shall remain primarily liable to the certificated tower for all charges incurred for towing and storage charges less whatever proceeds are realized at the foreclosure sale.
  5. In the event it shall be determined that failure to locate the last-registered and/or legal owner and/or lienholders was caused by any misinformation furnished by any agency of government, or because of lack of information that a government agency has the legal duty to provide, and providing that the certificated tower shall have exercised its best efforts to locate the last registered and/or legal owner and/or lienholders, the certificated tower shall be absolved of any civil duty to the lawful owner of the vehicle, and shall have complete defense against any criminal charges growing out of the disposal of the vehicle as provided in this section. In this regard, a certificated tower shall rely on the performance of law enforcement to comply with statutes dealing with the reporting of vehicles reported stolen. In addition, proof by the certificated tower of having made inquiry of the appropriate registry in the state in which the vehicle is registered in the manner required by the registry shall constitute best efforts.

History of Section. P.L. 1994, ch. 328, § 1; P.L. 1997, ch. 326, § 114; P.L. 2020, ch. 79, art. 1, § 6.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

39-12.1-9. Foreclosure of lien.

  1. Any vehicle subject to a possessory lien as provided for in § 39-12.1-6 , not redeemed by its owner within a period of ten (10) days from the date of the notice sent in conformity with § 39-12.1-8(a) or sixty (60) days from the date of notice sent in conformity with §§ 39-12.1-4 and 39-12.1-8(b) , may be sold at a nonjudicial public auction.
  2. In addition to the notice required pursuant to §§ 39-12.1-8(a) or 39-12.1-4 and 39-12.1-8(b) , notice of the sale shall be:
    1. Published in a newspaper of general circulation in the county in which the address of the registered owner is located or in which the business of the certificated tower is located if the identity of the last registered owner cannot be determined at least once at least ten (10) days prior to the sale; and
    2. Posted in the certificated tower’s place of business; and
    3. Mailed by registered mail, return receipt requested, to the officer-in-charge of the police department or person who instigated the initial tow.
  3. The purchaser of a vehicle sold at auction pursuant to the provisions of this chapter shall take title to the vehicle free and clear of all liens and claims of ownership. The certificated tower selling the vehicle shall give the purchaser a sales receipt, bill of sale, and affidavit of compliance with the provisions of this chapter. Upon presentation of the sales receipt, bill of sale, and affidavit of compliance to the division of motor vehicles, the division shall: (1) Cause any prior title and/or registration to the vehicle to be canceled and revoked; and (2) Shall issue to the purchaser a new title and registration.
  4. The proceeds from the foreclosure sale shall be distributed to the extent available as follows:
    1. First, to pay for the expenses of the auction;
    2. Second, to pay the certificated tower for the costs of recovery, of towing, and storage of the vehicle in accordance with its published tariff; and
    3. Any remainder from the proceeds of sale shall be deposited with the general treasurer of the state to be held in a restricted account for the registered or legal owner or entitled lienholder. All sums held by the public utilities commission for a period of three (3) or more years for which no claim has been made by the registered and/or legal owner or lienholder shall be presumed abandoned and shall revert to the general fund.

History of Section. P.L. 1994, ch. 328, § 1.

39-12.1-10. Special procedures regarding the disposal of abandoned vehicles of no value.

Notwithstanding any provision of the general laws to the contrary, a police department that orders the removal of or takes into custody an abandoned vehicle of no value shall hold the vehicle for a period of not less than ten (10) days. After the ten (10) days, the police department or its authorized representative shall remove the vehicle identification number from the vehicle and shall maintain a record of the number removed from the vehicle for a period of not less than one year. After the ten-day (10) period, the vehicle shall be demolished. A demolisher, who or that receives an abandoned vehicle of no value from a police department or certificated tower directed by the police to deliver the abandoned vehicle of no value, shall demolish the entire vehicle as received within fourteen (14) days of the receipt of the vehicle. Within seven (7) days after demolishing the vehicle, the demolisher shall provide the police department and the certificated tower that delivered the vehicle for demolition with a certificate attesting that the vehicle has been demolished in accordance with this section. The certificate shall be kept on file by the police department and the certificated tower for a period of one year.

History of Section. P.L. 1994, ch. 328, § 1.

39-12.1-11. Preexisting impoundments.

Any certificated tower having in its possession any vehicle for sixty (60) days or longer, of whatever value and regardless of how it came legally into possession thereof, is hereby presumed to have a valid possessory lien on the vehicle and may proceed to foreclosure after giving notice as provided in §§ 39-12.1-4 and 39-12.1-8 of the lien.

History of Section. P.L. 1994, ch. 328, § 1.

39-12.1-12. Private trespass towing.

  1. The owner or person in control of any parcel of property may cause to be removed from the property vehicles trespassing upon the property without the consent of the owner or person in control of the property by retaining, in writing, a certificated tower to remove the trespassing vehicle and relocate the vehicle to its private impoundment lot; and this procedure may be undertaken and accomplished without the need to resort to the judicial process; provided, however, that the impoundment lot shall be within ten (10) miles of the point of removal; and provided further that the lot shall be open for business to release the vehicle the same hours it is open to receive the vehicle; and provided further that there shall be posted on the outside of the office of the lot the business hours.
  2. All charges for towing, in accordance with the published tariff and storage shall be borne by the last-registered and/or legal owner of the vehicle for which charges the certificated tower shall have a possessory lien as set forth elsewhere in this chapter; provided, however, that should the last-registered and/or legal owner prove through judicial process that the vehicle was not in fact trespassing on the property of the owner or person in control, the charges shall be borne by the owner or person in control of the property who ordered the towing, removal, relocation, and storage. The last-registered and/or legal owner shall, however, as a prerequisite to procedure to recover the charges from the owner or person in control of the property, pay in full all charges assessed due the certificated tower in accordance with its published tariff.
  3. A certificated tower shall remove vehicles from private property at the direction of the owner or person in control thereof only upon receiving the direction in writing, which writing and notice shall be kept in the records of the certificated tower and which writing shall be a complete defense to any civil and criminal charges resulting from removal of the vehicle.

History of Section. P.L. 1994, ch. 328, § 1; P.L. 1999, ch. 304, § 1; P.L. 1999, ch. 453, § 1.

39-12.1-13. Form of notice.

TO: (LAST REGISTERED OWNER AND KNOWN LIENHOLDERS) You are hereby given notice that a (year, make, and model of vehicle) serial number , is being stored at (name, address and telephone number of storage facility). The vehicle is in the possession of (name, address and telephone number of certificated tower), having been towed at the direction of (name of police department or person ordering tow) because (reason for tow). You are given notice that recovery, towing, and storage charges, for which the registered and/or legal owner is liable, are accruing and that (tower's name, address and telephone number) has claimed a possessory lien, pursuant to , for the charges. You may take possession of the vehicle at any time during regular business hours by appearing with a police release, if required, and payment of all charges accrued to date of retaking. § 39-12.1-6 If you claim that the original towing was improper or not legally justified you may contest the towing by filing a complaint within ten (10) days from the date of this notice with the public utilities commission, provided that security in an amount and form satisfactory to the public utilities commission is posted with the filing of the complaint. You are further given notice that if you fail to file a complaint or fail to retake possession of the vehicle, the vehicle will be sold at public auction and the proceeds of the sale will be first applied to recovery, towing, and storage charges with any excess to be deposited with the public utilities commission to be held in an account for the registered or legal owner or entitled lienholders as provided for in . § 39-12.1-9(d)(3) You are further given notice that any recovery, towing and storage charges in excess of the sale proceeds shall remain as a civil obligation of the owner. (Name and address of certificated tower or attorney)

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History of Section. P.L. 1994, ch. 328, § 1; P.L. 2020, ch. 79, art. 1, § 6.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

39-12.1-14. Form of foreclosure notice.

TO: (LAST REGISTERED OWNER AND KNOWN LIENHOLDER) You are hereby given notice that no complaint having been filed and the vehicle not having been claimed or possession retaken or arranged for in accordance with the notice given on (date of first notice) that recovery, towing, and storage charges for which the registered and/or legal owner is liable have and are accruing and the (tower's name, address, and telephone number) is claiming a possessory lien, pursuant to , for the charges. You may take possession of the vehicle at any time during regular business hours by appearing with a police release, if required, and payment of all charges accrued to date or retaking. § 39-12.1-6 You are further given notice that if you fail to retake possession of the vehicle, the vehicle will be sold at public auction at (time of sale) on (date of sale) at (address of location of sale). You are further given notice that the proceeds from the sale will be distributed as provided for in the first notice. (name and address of tower or attorney)

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History of Section. P.L. 1994, ch. 328, § 1.

39-12.1-15. Enforcement and administration of chapter.

The public utilities administrator shall supervise, regulate, and enforce the provisions of this chapter.

History of Section. P.L. 1994, ch. 328, § 1.

NOTES TO DECISIONS

Applicability.

City’s request for proposals requiring towing companies to remit a referral fee to the city was invalid because enforcement of the Towing Storage Act, R.I. Gen. Laws tit. 39, ch. 12.1, rested with the state Division of Public Utilities and there was no transfer or delegation of that authority to the cities and towns; further, R.I. Gen. Laws § 39-12-12 contained language that prohibited a towing company from refunding or remitting, in any manner, any portion of its fee. Thus, state law explicitly prohibited towing companies from both refunding money to a customer and from transmitting any portion of the rates or charges to anyone in any manner, including the person or entity that selected the tow company. Grasso Serv. Ctr. v. Sepe, 962 A.2d 1283, 2009 R.I. LEXIS 13 (2009).

Chapter 13 Motor Passenger Carriers

39-13-1. Definitions.

  1. “Coordinated paratransit services” means paratransit services coordinated by the department of transportation, to be provided under a brokerage or other contractual model to provide, promote, and coordinate new or existing paratransit operations to enable all state, municipal, and private agencies access to appropriate paratransit services.
  2. “Jitney” means and includes any motor bus or other public-service motor vehicle operated in whole or in part upon any street or highway in such manner as to afford a means of transportation similar to that afforded by a street railway company, by indiscriminately receiving or discharging passengers; or running on a regular route or over any portion thereof; or between fixed termini.
  3. “Paratransit services” means flexible transportation services provided on a demand-responsive and advance-reservation basis, for any destination within the scope of a service program provided by a state or municipal agency, the fee for which is determined pursuant to a contract between the service provider and the state or municipal agency. Paratransit includes single or group trips or trips made on a recurring basis such as for work, school, medical, nutrition, and sheltered workshops.
  4. “Public-service motor vehicle” shall include all motor vehicles as defined in § 31-1-3 , used for the transportation of passengers for hire.
  5. “Transportation operator(s)” means an entity(ies) providing flexible transportation services that are operated publicly or privately, and are distinct from conventional fixed-route, fixed-schedule transit, and are generally operated with low-capacity vehicles that provide curb-to-curb or door-to-door service that typically involves transportation of elderly, disabled, low-income, or the otherwise transportation-dependent population.

History of Section. P.L. 1922, ch. 2221, § 1; G.L. 1923, ch. 254, § 1; G.L. 1938, ch. 125, § 1; impl. am. P.L. 1950, ch. 2595, art. 1, § 2; G.L. 1956, § 39-13-1 ; P.L. 1992, ch. 279, § 1.

Comparative Legislation.

Carriers of passengers:

Conn. Gen. Stat. § 13b-80 et seq.

Mass. Ann. Laws ch. 159A, § 1 et seq.

NOTES TO DECISIONS

Intrastate and Interstate Application.

The legislature intended this chapter to apply to all public service transportation by motor vehicles over the highways of the state whether engaged in interstate or intrastate commerce. Newport Elec. Corp. v. Oakley, 47 R.I. 19 , 129 A. 613, 1925 R.I. LEXIS 55 (1925).

Collateral References.

Motorbus or truck terminal as nuisance. 2 A.L.R.3d 1372.

39-13-2. Jitneys subject to regulation.

Every person, association, or corporation owning or operating a jitney is hereby declared a common carrier and subject as such to the jurisdiction of the division of public utilities and carriers, and while so operating, to such reasonable rules and regulations as the division may prescribe with respect to routes, fares, speed, schedules, continuity of service, and the convenience and safety of passengers and the public.

History of Section. P.L. 1922, ch. 2221, § 2; G.L. 1923, ch. 254, § 2; G.L. 1938, ch. 125, § 2; G.L. 1956, § 39-13-2 .

Cross References.

Functions of department of business regulation, § 42-14-2 .

NOTES TO DECISIONS

Exemption From General Law.

Jitneys operating over fixed routes are expressly exempted from the statutory liability imposed on other owners or bailees who consent to the use by others of their motor vehicles, but the liability of owners and operators of jitneys is governed by the common law and this chapter. Lind v. Interstate Motor Coach Corp., 51 R.I. 61 , 150 A. 821, 1930 R.I. LEXIS 50 (1930).

Responsibility of Bailor.

There was no public policy requiring defendant jitney owner to be liable under its bond for negligence of employee of another company driving defendant’s jitney on route authorized for other company but not for defendant. Lind v. Interstate Motor Coach Corp., 51 R.I. 61 , 150 A. 821, 1930 R.I. LEXIS 50 (1930).

Collateral References.

Reasonableness and validity of requirements as to bonds from operators of jitney buses. 22 A.L.R. 230.

Regulations respecting type or condition of automobile used in transportation of passengers for hire, validity of. 7 A.L.R.2d 1266.

39-13-2.1. Jitneys not subject to regulation.

  1. Any person, association, or corporation operating a jitney, bus, or other motor vehicle as a transportation operator as defined in this chapter for the purpose of providing paratransit or coordinated paratransit services for the benefit of the citizenry of the state shall be exempted from regulation under this chapter.
  2. Transportation operators may enter contractual agreements with third-party transportation operators to provide paratransit services and the third parties shall be similarly exempted from regulation under this chapter.
  3. Provided, however, all transportation operators providing paratransit services shall be required to meet all driver and vehicle safety requirements as set forth in this chapter including but not limited to: (1) The same inspection standards or regulations as a jitney-registered vehicle including semi-annual safety inspections in accordance with chapter 38 of title 31; (2) That failure of a semi-annual state safety inspection shall result in suspension of the vehicle registration until such time as all defects are corrected; and (3) The requirements of § 39-13-11 . Nothing in this section shall be construed to limit the power of the department of administration to require additional safety or other requirements, either by regulation or contract.

History of Section. P.L. 1992, ch. 279, § 2; P.L. 1994, ch. 70, art. 23, § 4.

39-13-3. Certificate requirement for jitney operation.

No person, association, or corporation shall operate a jitney until the owner thereof shall have obtained a certificate from the division specifying the route over which the jitney may operate; the number of passengers it may carry at any one time; the service to be furnished; and that public convenience and necessity require operation over the route. Certificates issued under this chapter shall be renewed before the close of business on December 31 of each calendar year. The renewal fee shall be two hundred and fifty dollars ($250) and shall be submitted with the renewal form. All revenues received under this section shall be deposited as general revenues; provided, however, that this fee shall not apply to any city or town, or any agency or department of any city or town of the state, or any nonprofit jitney service utilized for the transportation of senior citizens.

History of Section. P.L. 1922, ch. 2221, § 3; G.L. 1923, ch. 254, § 3; P.L. 1936 (s. s.), ch. 2463; G.L. 1938, ch. 125, § 3; G.L. 1956, § 39-13-3 ; P.L. 1992, ch. 133, art. 34, § 6; P.L. 1995, ch. 370, art. 40, § 119; P.L. 2007, ch. 73, art. 26, § 4; P.L. 2007, ch. 485, § 4.

NOTES TO DECISIONS

Duplication of Service.

Petitioner was not entitled to a certificate of public convenience where railroad service was adequate and ran parallel to the proposed jitney route of petitioner. Abbott v. Public Utils. Comm'n, 48 R.I. 196 , 136 A. 490, 1927 R.I. LEXIS 42 (1927).

Interstate Commerce.

The provisions authorizing the public utilities commission (now division of public utilities and carriers) to specify the route over which motor vehicles engaged in interstate commerce may operate, the number of passengers they may carry at any one time, and the service they may render are in the interest of public safety and conservation of highways and do not place an unnecessary restraint on interstate commerce contrary to the commerce clause. Newport Elec. Corp. v. Oakley, 47 R.I. 19 , 129 A. 613, 1925 R.I. LEXIS 55 (1925).

Resident of Massachusetts, who attempted to operate a bus from a terminal in Rhode Island to a terminal in Massachusetts without obtaining a certificate could be enjoined, since there were several regulations to which he was subject even though engaged in interstate commerce. Newport Elec. Corp. v. Oakley, 47 R.I. 19 , 129 A. 613, 1925 R.I. LEXIS 55 (1925).

State public utility division hearing on issuance of certificate for interstate commerce was to enable division to determine whether the public safety would be endangered by addition of applicant’s motor vehicles to the stream of traffic and whether it would injuriously affect the orderly regulation of traffic and not to determine if public convenience and necessity justified services since this is within regulation of interstate commerce, while the first object is a valid exercise of the police power. Interstate Transit Corp. v. Division of Public Utilities, 57 R.I. 160 , 188 A. 875, 1937 R.I. LEXIS 76 (1937).

Petitions as Evidence.

Signed petitions by persons residing in community where certificate is requested are of little value in determination of convenience and necessity by the commission (now division), since signers are not subject to cross-examination. Abbott v. Public Utils. Comm'n, 48 R.I. 196 , 136 A. 490, 1927 R.I. LEXIS 42 (1927).

Public Convenience and Necessity.

The commission (now division) in passing upon public convenience and necessity must consider whether the proposed route is suited to and tends to promote the accommodation of the public and also whether it is reasonably required to meet the need. Abbott v. Public Utils. Comm'n, 48 R.I. 196 , 136 A. 490, 1927 R.I. LEXIS 42 (1927).

The expression “public convenience and necessity” is not synonymous with “handy” and “easy of access” but means “fitting and suitable” to the public need. Abbott v. Public Utils. Comm'n, 48 R.I. 196 , 136 A. 490, 1927 R.I. LEXIS 42 (1927).

39-13-4. Application for certificate — Fee — Domicile of applicant.

A certificate shall be issued only after written application for a certificate, accompanied by a fee of two hundred and fifty dollars ($250), has been made by the owner of the jitney; provided, however, that this fee shall not apply to any city or town, or any agency or department of any city or town of the state, or any nonprofit jitney service utilized for the transportation of senior citizens. All revenues received under this section shall be deposited as general revenues. No certificate shall be issued to any person who is not a citizen resident within this state, nor to any association, unless all members of the association are citizens resident within this state, nor to any corporation, unless either all stockholders thereof are citizens resident within this state or the corporation has been created by a special act of the general assembly, upon petition for the same, the pendency of which petition shall be notified in such manner as the general assembly may by general law or special act prescribe.

History of Section. P.L. 1922, ch. 2221, § 3; G.L. 1923, ch. 254, § 3; P.L. 1936 (s. s.), ch. 2463; G.L. 1938, ch. 125, § 3; G.L. 1956, § 39-13-4 ; P.L. 1960, ch. 71, art. 3, § 33; P.L. 1969, ch. 240, § 14; P.L. 1986, ch. 34, § 1; P.L. 1992, ch. 133, art. 34, § 6; P.L. 1995, ch. 370, art. 40, § 119; P.L. 2007, ch. 73, art. 26, § 3; P.L. 2007, ch. 485, § 3.

Cross References.

License fees payable by jitney operators in interstate commerce, § 31-6-4 .

NOTES TO DECISIONS

Nonresidents.

Certificate cannot be withheld from person about to engage in interstate commerce on the ground that he is not a citizen resident within the state. Newport Elec. Corp. v. Oakley, 47 R.I. 19 , 129 A. 613, 1925 R.I. LEXIS 55 (1925).

Transfer to Foreign Corporation.

Division of public utilities could authorize transfer of motor carrier certificate from resident of state to foreign corporation which had purchased same, despite provisions of this section and R.I. Const. amend. IX, § 1 , requiring corporation to be created by special act of general assembly, where interstate commerce commission had issued an order approving the transfer. New England Greyhound Lines, Inc. v. Powers, 108 F. Supp. 953, 1952 U.S. Dist. LEXIS 1961 (D.R.I. 1952).

39-13-5. Hearing on application for certificate.

Upon receipt of an application, the division shall fix a time and place of a hearing thereon and shall give notice of the pendency of the application and of the time and place of the hearing thereon to the applicant, to the mayor of each city and the president of the town council of each town in or through which the applicant desires to operate, and to any common carrier operating over any portion of a route or over a route substantially parallel thereto, and shall give a public hearing upon the petition. Any town or city within which or between which, and any other town or city to which a common carrier is furnishing service, may, at any time after the certificate of public convenience and necessity has been issued, bring a written petition to the division in respect to routes, fares, speed, schedules, continuity of service, and the convenience and safety of passengers and the public. Thereupon, the division shall fix a time and place for a hearing upon the petition and shall mail a notice thereof to the parties in interest and give such other notice thereof as the division may deem proper by advertisement. The division may revoke or amend any certificate.

History of Section. P.L. 1922, ch. 2221, § 4; G.L. 1923, ch. 254, § 4; G.L. 1938, ch. 125, § 4; G.L. 1956, § 39-13-5 .

Collateral References.

Annexation to city as affecting certificate previously issued by state to motor bus line. 154 A.L.R. 1440.

When granting or refusing certificate of necessity or convenience for operation of motor buses justified. 67 A.L.R. 957.

39-13-6. Jitney operation by railroad or street railway company.

  1. Any street railway company incorporated under the laws of this state and operating a street railway within this state or any railroad company incorporated under the laws of this state and operating a railroad in this state may acquire, own, and operate jitneys, subject to the provisions of this chapter and to all other laws relating to the registration, licensing, bonding, and operating of jitneys.
  2. No street railway company shall substitute for any existing trolley service, jitney service over a route over and along the same highway occupied by a line of street or other railway, or over a route that will serve the same or nearly the same communities served by a line of street or other railway, until the division shall, after due notice to the towns and cities affected thereby and a public hearing thereon, if it appears that the public interest will be served thereby, have authorized a substitution of service; and the street railway company shall thereafter continue the jitney service until, after like notice and hearing and for cause shown, the division shall have authorized the abandonment thereof.

History of Section. P.L. 1922, ch. 2221, § 5; G.L. 1923, ch. 254, § 5; P.L. 1925, ch. 635, § 1; P.L. 1928, ch. 1174, § 1; G.L. 1938, ch. 125, § 5; G.L. 1956, § 39-13-6 .

Cross References.

Exemption from general financial responsibility law, § 31-32-11 .

Collateral References.

Power of municipal corporation to limit exclusive use of designated lanes or streets to buses and taxicabs. 43 A.L.R.3d 1394.

39-13-7, 39-13-8. [Repealed.]

Repealed Sections.

These sections (P.L. 1922, ch. 2222, §§ 1, 2; G.L. 1923, ch. 254, §§ 13, 14; G.L. 1938, ch. 125, §§ 13, 14; impl. am. P.L. 1939, ch. 660, § 22; G.L. 1956, §§ 39-13-7 , 39-13-8), relating to posting of bond to pay damages for jitney operation and amount of bond, were repealed by P.L. 2006, ch. 579, § 2, effective July 14, 2006.

39-13-9. Proof of financial responsibility.

The owner of every jitney shall, before operating or continuing to operate a jitney on the public highways of this state, furnish to the division of public utilities and carriers a certificate of insurance issued by an insurance company authorized to transact business in this state, showing that the owner has a policy that insures against liability for injury to persons and damage to property that may be caused by the operation of the jitney, such policy to provide for indemnity in the sum of not less than three hundred thousand dollars ($300,000) combined single limit or its equivalent split level.

History of Section. G.L. 1923, ch. 254, § 15; P.L. 1928, ch. 1141, § 1; G.L. 1938, ch. 125, § 15; impl. am. P.L. 1939, ch. 660, § 22; G.L. 1956, § 39-13-9 ; P.L. 2006, ch. 579, § 3.

39-13-10. Display of certificate.

The owner or operator of every jitney shall display in a conspicuous place in the jitney the certificate issued pursuant to this chapter or a certified copy thereof.

History of Section. P.L. 1922, ch. 2221, § 6; G.L. 1923, ch. 254, § 6; G.L. 1938, ch. 125, § 6; G.L. 1956, § 39-13-10 ; P.L. 1997, ch. 326, § 115.

39-13-11. Registration and licensing of vehicles and operators — CPR training requirement.

  1. Upon the granting of a certificate of public convenience and necessity as provided in this chapter, the division of motor vehicles shall have jurisdiction over the registration of any jitney and over the licensing of its operator and its lighting, safety, and sanitary conditions.
  2. Effective January 1, 1986, no new license shall be issued to a jitney operator unless he or she has presented evidence of satisfactory completion of a cardiopulmonary resuscitation (CPR) training program. The program is to be approved by the American Heart Association, Rhode Island Affiliate, Inc., or the American Red Cross Association, Inc.; provided, however, that any person licensed as a jitney operator prior to January 1, 1986, shall not be required to complete the training program.
  3. This section shall not apply to operators of “taxicabs” or “limited public motor vehicles” as defined in chapter 14 of this title.

History of Section. P.L. 1922, ch. 2221, § 7; G.L. 1923, ch. 254, § 7; G.L. 1938, ch. 125, § 7; impl. am. P.L. 1939, ch. 660, § 22; G.L. 1956, § 39-13-11 ; P.L. 1985, ch. 34, § 1; P.L. 1986, ch. 65, § 1; P.L. 1986, ch. 120, § 1; P.L. 1997, ch. 326, § 115.

Cross References.

Drivers of vehicles, off-duty time required, § 31-27-5 et seq.

Foreign vehicles, registration, § 31-7-2 .

Inspection of vehicles, § 31-22-12 .

Collateral References.

State’s liability to one injured by improperly licensed driver. 41 A.L.R.4th 111.

39-13-12. License plates.

Every jitney shall carry markers to be furnished by the division of motor vehicles, which markers shall indicate that the vehicle is licensed for jitney service.

History of Section. P.L. 1922, ch. 2221, § 8; G.L. 1923, ch. 254, § 8; G.L. 1938, ch. 125, § 8; impl. am. P.L. 1939, ch. 660, § 22; G.L. 1956, § 39-13-12 .

39-13-12.1. Issuance of a permit to interstate carriers.

Every motor carrier engaged in transporting passengers over the highways of this state for compensation in interstate commerce, shall file an application with the administrator for a permit of registration. The application shall be accompanied by a fee of twenty-five dollars ($25.00). Upon a showing by the carrier that it has been authorized by the Interstate Commerce Commission to conduct an operation into, from, within, or through this state, and that the carrier is in compliance with all other requirements of this chapter, the administrator shall issue a permit of registration to the carrier as soon as possible and the carrier shall not so operate in interstate commerce unless and until the permit of registration shall have been issued. The motor carrier shall be required to file with the administrator only that portion of its interstate authority permitting operations within the borders of this state, and the motor carrier shall not be required to file with the administrator emergency or temporary operating authority having a duration of thirty (30) consecutive days or less, if the carrier has registered its interstate authority and registered and identified its vehicles under the provisions of this chapter. The administrator shall prescribe reasonable rules and regulations governing the registration of interstate authority. Each intrastate motor carrier holding a common-carrier certificate from the administrator is hereby granted the right to operate motor vehicles in interstate commerce in the transportation of passengers for compensation, as authorized by the Interstate Commerce Commission without obtaining a permit of registration from the administrator.

History of Section. P.L. 1969, ch. 240, § 15; P.L. 1986, ch. 34, § 1.

39-13-12.2. Registration and identification of vehicles.

Every interstate motor carrier engaged in the transportation of passengers for compensation over the highways of this state, subject to the provisions of this chapter, shall apply to the administrator for the issuance of a vehicle identification device for the registration and identification of vehicles. The application shall be accompanied by a filing fee in the amount of eight dollars ($8.00) for each identification device applied for. All intrastate carriers shall be assessed twenty dollars ($20.00) for each identification device for which an application is made; provided, however, that this fee shall not apply to any city or town, or any agency or department of any city or town of the state, or any nonprofit jitney service utilized for the transportation of senior citizens. All revenues received under this section shall be deposited as general revenues. The identification device shall be furnished annually to every carrier whose duty it shall be to apply therefor. It shall be unlawful for any motor vehicle to be engaged in transporting passengers for compensation in either intrastate or interstate commerce without the owner thereof having applied for and received the required identification device, unless the vehicle is exempted from the provisions of this chapter. Each identification device shall be accompanied by a registration card issued by the administrator which shall be in the possession of the vehicle’s driver when the vehicle is in operation. Transfers of the identification device from one vehicle to another are hereby prohibited. The administrator in his or her discretion may refuse to reissue the identification device to the holder of any certificate, permit, or permit of registration, pending any complaint or hearing upon the question of revocation or suspension or in which the question is involved. The administrator shall prescribe reasonable rules and regulations governing the registration and identification of motor vehicles authorized for operation under this chapter.

History of Section. P.L. 1969, ch. 240, § 15; P.L. 1992, ch. 133, art. 34, § 6; P.L. 1997, ch. 326, § 115.

39-13-13. [Repealed.]

Repealed Sections.

This section (as formulated by the 1969 reenactment), concerning appeals from division, was repealed by P.L. 1969, ch. 240, § 18.

39-13-14. Administrative powers.

The division is authorized to make such rules and regulations, to hold such hearings, and to issue such certificates as the provisions of §§ 39-13-1 39-13-6 and §§ 39-13-1 0 — 39-13-16 may require.

History of Section. P.L. 1922, ch. 2221, § 11; G.L. 1923, ch. 254, § 11; G.L. 1938, ch. 125, § 11; G.L. 1956, § 39-13-14 .

39-13-15. Penalty for violations.

Any person or the officers of any association or corporation, who shall violate any of the provisions of this chapter or any order, rule, or regulation adopted or established by the division under the provisions of this chapter, shall be fined not more than one hundred dollars ($100) or imprisoned not more than sixty (60) days, or both.

History of Section. P.L. 1922, ch. 2221, § 10; G.L. 1923, ch. 254, § 10; G.L. 1938, ch. 125, § 10; G.L. 1956, § 39-13-15 .

NOTES TO DECISIONS

Liability for Penalty.

The statutory penalty of fine or imprisonment is imposed on the actual user of the jitney, not on the one who merely consents to or permits its use. Lind v. Interstate Motor Coach Corp., 51 R.I. 61 , 150 A. 821, 1930 R.I. LEXIS 50 (1930).

39-13-16. Severability.

Each section of this chapter and every part of each section are hereby declared to be independent sections; and the holding of any section or sections, or part or parts thereof, to be void, ineffective, or unconstitutional for any cause, shall not be deemed to affect any other section or part thereof.

History of Section. P.L. 1922, ch. 2221, § 13; G.L. 1923, ch. 254, § 12; G.L. 1938, ch. 125, § 12; G.L. 1956, § 39-13-16 .

39-13-17. Exemptions.

Every person, firm, or corporation engaged in the business of public passenger transportation in the state of Rhode Island shall be and remain exempt from gasoline and diesel engine fuel taxes for such fuel as is consumed by its public passenger buses used exclusively in its public passenger transportation system, as distinguished from buses used for charter, contract, lease, or school transportation service, and shall be and remain exempt from the motor vehicle registration fees for each public passenger bus used exclusively in its public passenger transportation system as distinguished from buses used for charter, contract, lease, or school transportation service, as provided in § 31-6-1 , as amended, in excess of twenty-five dollars ($25.00).

History of Section. P.L. 1964, ch. 166, § 1.

Chapter 13.1 Motor Carrier Transportation Contracts

39-13.1-1. Definitions.

As used in this chapter:

  1. “Motor carrier” means a contract carrier, a common carrier, or a private carrier of property or passengers by motor vehicle.
  2. “Motor carrier transportation contract” means a contract, agreement, or understanding covering:
    1. The transportation of property for compensation by a motor carrier or a service incidental thereof;
    2. Entrance on property by a motor carrier for the purposes of loading, unloading, or transporting property for compensation or a service incidental thereof; or
    3. A service incidental to an activity described in subsections (2)(i) and (2)(ii).
  3. “Promisee” means the promisee and any agents, employees, servants, or independent contractors who are directly responsible to the promisee except for motor carriers party to a motor carrier transportation contract with the promisee, and the motor carrier’s agents, employees, servants, or independent contractors directly responsible to the motor carrier.

History of Section. P.L. 2018, ch. 83, § 1; P.L. 2018, ch. 89, § 1.

39-13.1-2. Indemnity agreement in motor carrier transportation contract void.

  1. Notwithstanding the provisions of chapters 12 and 13 of this title, or any general or public law to the contrary, any provision, clause, covenant, or agreement contained in a motor carrier transportation contract that purports to indemnify, defend, or hold harmless, or has the effect of indemnifying, defending, or holding harmless, an indemnitee from or against any liability for loss or damage resulting from the indemnitee’s negligence or intentional acts or omissions shall be void and unenforceable.
  2. This section does not apply to the Uniform Intermodal Interchange and Facilities Access Agreement administered by the Intermodal Association of North America or other agreements providing for the interchange, use, or possession of intermodal chassis or other intermodal equipment.

History of Section. P.L. 2018, ch. 83, § 1; P.L. 2018, ch. 89, § 1.

39-13.1-3. Applicability.

This chapter shall apply to motor carrier transportation contracts entered into or renewed on or after the effective date of this chapter [June 28, 2018].

History of Section. P.L. 2018, ch. 83, § 1; P.L. 2018, ch. 89, § 1.

Chapter 14 Taxicabs and Limited Public Motor Vehicles

39-14-1. Definitions.

Terms used in this chapter shall be construed as follows, unless another meaning is expressed or is clearly apparent from the language or context:

  1. “Certificate” means a certificate of public convenience and necessity issued to a common carrier.
  2. “Common carrier” means any person who holds himself, herself, or itself out to the general public as engaging in the transportation by motor vehicle of passengers for compensation in a taxicab or in a limited public motor vehicle.
  3. “Driver” means any person operating a motor vehicle used for the transportation of passengers which he or she owns or is operating with the expressed or implied consent of the owner.
  4. “Limited public motor vehicle” means and includes every motor vehicle for hire, other than a jitney, as defined in § 39-13-1 , or a taxicab, as defined in this chapter, equipped with a taximeter used for transporting members of the general public for compensation only from a designated location on private property to such points as may be directed by the passenger.
  5. “Motor carrier” means a common carrier by motor vehicle.
  6. “Person” means and includes any individual, firm, partnership, corporation, company, association, joint stock association, or company, and his, her, or its lessee, trustee, receiver, assignee, or personal representative, and, where the context requires, “driver” as defined in this section.
  7. “Taxicab” means and includes every motor vehicle for hire, other than a jitney as defined in § 39-13-1 , equipped with a taximeter, used for transporting members of the general public for compensation to any place within this state as may be directed by a passenger on a call-and-demand basis, when the solicitation or acceptance of the passenger occurs within the location named in the certificate; provided, that the vehicle’s driver may, if and when solicited on a public highway at any location at which he or she is discharging a passenger, which location is not shown in the certificate, provide transportation from the location only to a place named in the certificate.
  8. “Taximeter” means any instrument or device by which the charge for transportation in any taxicab or limited public motor vehicle is mechanically calculated and indicated by means of figures, either for distances traveled or for waiting time, or for both.
  9. “Wheelchair-accessible taxicab” means a taxicab designed and equipped to allow the transportation of a person(s) who uses a wheelchair without requiring that person(s) to be removed from the wheelchair, but the taxicab is not restricted to transporting only persons using wheelchairs.

History of Section. P.L. 1929, ch. 1423, § 1; P.L. 1930, ch. 1552, § 1; P.L. 1938, ch. 100, § 1; G.L. 1938, ch. 101, § 1; P.L. 1956, ch. 3829, § 1; P.L. 1956, ch. 3830, § 1; G.L. 1956, § 39-14-1 ; P.L. 1965, ch. 193, § 1; P.L. 1969, ch. 240, § 16; P.L. 1997, ch. 326, § 116; P.L. 2007, ch. 163, § 1; P.L. 2007, ch. 266, § 1.

Comparative Legislation.

Taxicabs:

Conn. Gen. Stat. § 13b-95 et seq.

Mass. Ann. Laws ch. 40, § 22, ch. 90, § 33, ch. 98, §§ 45, 56.

NOTES TO DECISIONS

Ambulance.

An ambulance service providing both emergency services and transportation of patients between facilities is a common carrier. Therefore, if an ambulance is engaged in emergency services or is a municipal ambulance providing services outside of a hospital, the gross negligence standard of care applies. If, however, the ambulance is part of a private ambulance service and is providing non-emergency transportation at the time of injury, the ambulance is exempted from § 23-4.1-12 and the gross negligence standard does not apply. Lavallee v. Alert Ambulance Servs., 854 F. Supp. 60, 1994 U.S. Dist. LEXIS 7981 (D.R.I. 1994).

Operation for Hire.

Operation for hire as contemplated in § 39-14-20 includes all operation designed to further the basic purpose, the business of providing transportation for hire which includes not only the actual carriage of passengers for compensation but operation of the vehicles along the highways in the course of soliciting such carriage or while standing at locations set apart for the solicitation of such patronage, even including such operation as is necessary in picking up passengers and leaving them at their destination. State v. Brown, 97 R.I. 95 , 196 A.2d 138, 1963 R.I. LEXIS 132 (1963).

Collateral References.

Car pool or “Share-the-expense” arrangement as subjecting vehicle operator to regulations applicable to carriers. 51 A.L.R.2d 1193.

39-14-2. Powers of division.

Every person owning or operating a motor vehicle engaged or to be engaged in operating a taxicab or limited public motor vehicle is declared a common carrier and subject as such to the jurisdiction of the division of public utilities and carriers. The division shall prescribe such rules and regulations as it shall deem proper to assure adequate, economical, safe, and efficient service at reasonable charges without unjust discrimination, undue preference or advantages, or unfair or destructive competitive practices. The division may require common carriers to prepare records and to preserve them, and to make such reports to it as shall disclose to the division the character of service rendered, the safety of equipment used, and the safety of operation, the character of the management and conduct of the common-carrier business, and its relation to and control of or by other carriers or other businesses. Upon complaint or upon his or her own initiative, the administrator may investigate or conduct a hearing as to compliance by any common carrier with the provisions of this title or regulations promulgated pursuant thereto, and shall issue orders as his or her findings shall indicate to be necessary or desirable for the public welfare. The findings of the administrator shall be reported in writing and copies thereof shall be furnished to the parties involved.

History of Section. P.L. 1930, ch. 1552, § 2; G.L. 1938, ch. 100, § 2; P.L. 1956, ch. 3829, § 1; G.L. 1956, § 39-14-2 ; P.L. 1969, ch. 240, § 16.

Cross References.

Functions of department of business regulation, § 42-14-2 .

39-14-2.1. Filing and availability of rate schedules.

Every taxicab or limited public motor vehicle shall file with the public utilities administrator current schedules that shall be open to public inspection, showing all rates, tolls, and charges it has established and that are in force at the time for any service performed by it within the state, or for any service in connection therewith or performed by any taxicab or limited public motor vehicle controlled or operated by it. A copy of so much of the schedules as the administrator shall deem necessary for the use of the public shall be printed in plain type or typewritten, and kept on file in every station or office of the taxicab or limited public motor vehicle, open to the public in such form and place as to be readily accessible and conveniently inspected, as the administrator may order. The administrator may determine and prescribe the form in which the schedules, required by this section to be kept open to public inspection, shall be prepared and arranged.

History of Section. P.L. 1985, ch. 499, § 1.

39-14-2.2. Notice of change in rates.

  1. No change shall be made in the rates, tolls, and charges that have been filed and published by any taxicab or limited public motor vehicle in compliance with the requirements of § 39-14-2.1 except after thirty (30) days’ written notice to the administrator which shall plainly state the changes proposed to be made in the schedule then in force, and the time when the changed rates, tolls, or charges will go into effect. A filing fee of fifty dollars ($50.00) shall accompany all filings made pursuant to this section. All revenues received under this section shall be deposited as general revenues. Whenever the administrator receives notice of any change or changes proposed to be made in any schedule filed under the provisions of § 39-14-2.1 , the administrator may hold a public hearing and make investigation as to the propriety of the proposed change or changes.
  2. After notice of any investigation, the administrator shall have power, by any order served upon the taxicab or limited public motor vehicle affected, to suspend the taking effect of any change or changes pending the decision thereof, but not for a longer period than five (5) months beyond the time when the change or changes would otherwise take effect; provided, however, that in the event that any hearing and/or investigation shall not have been completed at the expiration of the five-month (5) period, the administrator shall have power, by an order served upon the taxicab or limited public motor vehicle affected, to further suspend the taking effect of the change or changes pending the decision thereon, but not for a longer period than three (3) months beyond the expiration of the first mentioned five-month (5) period. Each hearing and investigation shall be conducted as expeditiously as may be practicable, and with a minimum of delay. Within ninety (90) days after the completion of any hearing, the administrator shall make such order in reference to any proposed rate, toll, or charge as may be proper.
  3. The administrator, in his or her discretion and for good cause shown, may allow the publication of rates or charges upon notice less than that specified in this section, or may modify the requirements of this section with respect to the posting and filing of tariffs, either in particular instances or by general order applicable to special or peculiar circumstances or conditions. The administrator, after a hearing, may establish from time to time such reasonable rules and regulations as he or she may deem necessary pertaining to the form of tariffs; the time and manner of filing thereof; the suspension of rates before the rates become effective; and bearing upon the validity of any filed or existing rate. No taxicab or limited public motor vehicle shall charge, demand, collect, or receive a greater or less compensation for transportation or any service in connection therewith between points enumerated in the tariff than the rates and charges specified in the filed tariffs in effect at the time.
  4. In the event of an appeal from an order of the administrator in any hearing under this section, the order shall remain in full force and effect during the pendency of the appeal.
  5. The administrator shall implement a gasoline price emergency surcharge program whereby a taxicab or limited public motor vehicle licensed under this chapter shall be permitted to impose and collect a surcharge, during such times and under such conditions wherein the administrator determines that the average price of gasoline in this state exceeds one dollar and fifty cents ($1.50) per gallon. Provided, that the administrator shall have discretion as to when to permit such surcharge to be imposed, except that the administrator shall not impose the surcharge at any time when the average price of gasoline, as determined by the administrator, does not exceed the price of one dollar and fifty cents ($1.50) per gallon.

History of Section. P.L. 1985, ch. 499, § 1; P.L. 1992, ch. 133, art. 34, § 7; P.L. 1997, ch. 326, § 116; P.L. 2001, ch. 307, § 1; P.L. 2003, ch. 412, § 1.

39-14-3. Certificate required for operation — Application and fee.

No person, association, or corporation shall operate a taxicab or taxicabs or a limited public motor vehicle or vehicles in any city or town in the state until the person, association, or corporation shall have obtained a certificate from the division certifying that public convenience and necessity require the operation of a taxicab or taxicabs or a limited public motor vehicle or vehicles for transportation of passengers, the acceptance or solicitation of which originate only within the territory specified in the certificate. The certificate shall be issued only after written application for a certificate, accompanied by a fee of one hundred dollars ($100), has been made, and public hearing held thereon. All revenues received under this section shall be deposited as general revenues. The administrator of the division of motor vehicles shall not register any vehicle defined in this section unless the person, association, or corporation shall present evidence of certification pursuant to this section to the administrator.

History of Section. P.L. 1930, ch. 1552, § 3; G.L. 1938, ch. 100, § 3; P.L. 1940, ch. 823, § 1; P.L. 1956, ch. 3829, § 1; G.L. 1956, § 39-14-3 ; P.L. 1960, ch. 71, art. 3, § 34; P.L. 1965, ch. 193, § 2; P.L. 1986, ch. 34, § 2; P.L. 1992, ch. 133, art. 34, § 7; P.L. 1995, ch. 370, art. 40, § 120; P.L. 1997, ch. 326, § 116.

NOTES TO DECISIONS

Conditions.

Where the public utility board attached a condition that applicants should not directly or indirectly own or operate any additional automobiles for hire upon the order granting certificates of convenience and necessity, such condition was too broad. Yellow Cab Co. v. Public Util. Hearing Bd., 73 R.I. 217 , 54 A.2d 28, 1947 R.I. LEXIS 67 (1947).

Motor Vehicle Registration.

State board of public roads was affirmed in suspending registrations of complainant’s autos where it could have reasonably found they were “soliciting passengers indiscriminately for transportation for hire” and therefore were operating a taxi business in violation of this chapter even though conducted on private property. Broadway Auto Livery v. State Bd. of Pub. Rds., 52 R.I. 109 , 158 A. 375, 1932 R.I. LEXIS 9 (1932).

Power to Grant Certificates.

The legislature intended to give broader passenger solicitation privileges to those operating taxicab services which it did not intend to give to those operating limited public service vehicles, but the statutes do not prohibit the issuance of a certificate authorizing the operation of a taxicab service to one who had been engaged in the operation of a limited public service vehicle where the prerequisite finding of public convenience and necessity has been duly made. Yellow Cab Co. v. Public Util. Hearing Bd., 96 R.I. 247 , 191 A.2d 23, 1963 R.I. LEXIS 82 (1963).

39-14-4. Hearing on application.

Upon receipt of an application, the division shall, within a reasonable time, fix the time and place of the hearing on every application. Notice of the hearing shall be given by first-class mail to the applicant and shall be published in a newspaper with statewide distribution.

History of Section. P.L. 1930, ch. 1552, § 3; G.L. 1938, ch. 100, § 3; P.L. 1940, ch. 823, § 1; P.L. 1956, ch. 3829, § 1; G.L. 1956, § 39-14-4 ; P.L. 1965, ch. 193, § 3; P.L. 1995, ch. 151, § 1.

NOTES TO DECISIONS

Evidence.

The director or the board, in determining whether general public convenience and necessity exist, may consider various factors including the present ability of a utility in the field to provide adequate service to meet any particular demand that may appear. Capaldo v. Public Util. Hearing Bd., 71 R.I. 245 , 43 A.2d 695, 1945 R.I. LEXIS 49 (1945).

Evidence established need for additional taxicabs. See Capaldo v. Public Util. Hearing Bd., 77 R.I. 378 , 75 A.2d 302, 1950 R.I. LEXIS 94 (1950).

Parties to Applications.

Where the protestant was made a party to the hearing for issuance of taxicab certificate of authority by this section, he is an aggrieved person as provided by (former) § 39-5-9. Yellow Cab Co. v. Public Util. Hearing Bd., 96 R.I. 247 , 191 A.2d 23, 1963 R.I. LEXIS 82 (1963).

39-14-4.1. Issuance of certificate to a taxicab or limited public motor vehicle.

A certificate shall be issued by the administrator, after a hearing, to any qualified applicant therefor, authorizing the whole or any part of the operations covered by the application, if it is found that the applicant is fit, willing, and able properly to perform the service proposed and to conform to the provisions of this chapter and the requirements, orders, rules, and regulations of the administrator thereunder, and that the proposed service, to the extent to be authorized by the certificate, is or will be required by the present or future public convenience and necessity; otherwise the application shall be denied. Any certificate issued under this chapter shall specify the service to be rendered and, at the time of the issuance and from time to time thereafter, attached to the exercise of the privileges granted by the certificate, such reasonable terms, conditions, and limitations as the public convenience and necessity may from time to time require. Certificates issued under this chapter shall be renewed before the close of business on December 31 of each calendar year. The renewal fee shall be one hundred dollars ($100) and shall be submitted with the renewal form. All revenues received under this section shall be deposited as general revenues.

History of Section. P.L. 1992, ch. 133, art. 34, § 8; P.L. 1995, ch. 370, art. 40, § 120.

39-14-4.2. Registration and identification of taxicabs and limited public motor vehicles.

Every taxicab and limited public motor vehicle engaged in the transportation of passengers for compensation over the highways of this state, subject to the provisions of this chapter, shall apply to the administrator for the issuance of a vehicle identification device for the registration and identification of vehicles. The application shall be accompanied by a filing fee in the amount of twenty dollars ($20.00) for each identification device for which an application is made. All revenues received under this section shall be deposited as general revenues. The identification device shall be furnished annually to every carrier whose duty it shall be to apply therefor. It shall be unlawful for any taxicab or limited public motor vehicle to be engaged in transporting passengers for compensation without the owner thereof having applied for and received the required identification device, unless the vehicle is exempted from the provisions of this chapter. Each identification device shall be accompanied by a registration card issued by the administrator which shall be in the possession of the vehicle’s driver, when the vehicle is operating. Transfers of the identification device from one vehicle to another are hereby prohibited unless authorized by the administrator. The administrator, in his or her discretion, may refuse to reissue the identification device to the holder of any certificate or permit pending any complaint or hearing upon the question of revocation or suspension or in which such question is involved. The administrator shall prescribe reasonable rules and regulations governing the registration and identification of motor vehicles authorized for operation under this chapter.

History of Section. P.L. 1992, ch. 133, art. 34, § 8; P.L. 1995, ch. 370, art. 40, § 120.

39-14-5. Certification of businesses previously established.

The business of operating any limited public motor vehicle actually established in any city or town on or before February 15, 1956, and in continuous operation from that date to the date of application, shall be presumed to be required by public convenience and necessity, and certificates for operation shall be issued as a matter of right without public hearing, the provisions of § 39-14-4 notwithstanding; provided, however, that the certificates shall be limited to the number of public service registrations in effect, or for which applications were on file in the division of motor vehicles on April 27, 1956, at five o’clock (5:00) p.m. Pending the issuance of the certificates by the division, the continued operation by the applicant shall be lawful.

History of Section. G.L. 1938, ch. 100, § 7; P.L. 1956, ch. 3829, § 1; G.L. 1956, § 39-14-5 ; P.L. 1965, ch. 193, § 4.

NOTES TO DECISIONS

Inadequate Service.

Where the public utility hearing board decided that existing taxi service was inadequate, the existing certificate holders were not entitled as a matter of law to the opportunity to put more cabs in service. Yellow Cab Co. v. Public Util. Hearing Bd., 73 R.I. 217 , 54 A.2d 28, 1947 R.I. LEXIS 67 (1947).

39-14-6. Safety and sanitary condition of vehicles — Inspection.

The division of motor vehicles shall have jurisdiction over the lighting, equipment, safety, and sanitary condition of all taxicabs or limited public motor vehicles, and shall cause an inspection thereof to be made before registering the taxicabs or limited public motor vehicles, and from time to time thereafter, as it shall deem necessary for the convenience, protection, and safety of passengers and of the public. A fee of one dollar ($1.00) shall be paid to the division of motor vehicles for each annual inspection and for each taxicab or limited public motor vehicle operator’s license hereafter issued by the division.

History of Section. P.L. 1930, ch. 1552, § 5; G.L. 1938, ch. 100, § 5; impl. am. P.L. 1939, ch. 660, § 22; P.L. 1956, ch. 3829, § 1; G.L. 1956, § 39-14-6 .

Cross References.

Inspection of vehicles, § 31-22-12 .

39-14-7. Display of certificate memorandum.

The owner or operator of each taxicab or limited public motor vehicle subject to the provisions of §§ 39-14-3 and 39-14-4 , shall display, in a conspicuous place therein, a memorandum issued by the division of the certificate provided for in this chapter.

History of Section. P.L. 1930, ch. 1552, § 4; G.L. 1938, ch. 100, § 4; P.L. 1956, ch. 3829, § 1; G.L. 1956, § 39-14-7 ; P.L. 1997, ch. 326, § 116.

39-14-8. Base of operations of limited public vehicles.

A limited public motor vehicle may only be operated from private property if the property is owned by the owner of the vehicle or is used exclusively for the purpose of transportation of passengers for hire and is leased by the owner of the vehicle; but no vehicle shall be operated from any taxicab stand on any public highway; nor shall the operator thereof transport any passenger for hire unless the transportation is requested by the passenger at an office of the owner of the vehicle, either personally or by telephone.

History of Section. G.L. 1938, ch. 100, § 1; P.L. 1956, ch. 3829, § 1; G.L. 1938, ch. 101, § 1; P.L. 1956, ch. 3830, § 1; G.L. 1956, § 39-14-8 .

Collateral References.

Taxicab or hack stands, validity of statute, ordinance, or regulation abolishing or forbidding granting of exclusive right or franchise to. 8 A.L.R.2d 574.

39-14-9. Vehicles to be operated by owner or employee — Assignment or lease of rights.

Every person proposing to enter into a contract, agreement, arrangement, or understanding, whereby the owner of a taxicab or limited public motor vehicle leases or otherwise lets a taxicab or limited public motor vehicle to an operator, shall file with the administrator, in the form to be provided by him or her, an application for approval of the agreement. The division shall, upon written application setting forth the purpose, terms, and conditions of the lease agreement, after investigation, approve or deny the request. The lease agreement shall be approved by the administrator if, after investigation, the applicant operator is found to be fit, willing, and able to perform the authorized service and to conform to the provisions of this chapter and the requirements, orders, rules, and regulations of the administrator thereunder.

History of Section. P.L. 1930, ch. 1552, § 9; G.L. 1938, ch. 100, § 9; P.L. 1956, ch. 3829, § 1; G.L. 1956, § 39-14-9 ; P.L. 1978, ch. 396, § 1; P.L. 2015, ch. 215, § 1; P.L. 2015, ch. 234, § 1.

Cross References.

Coverage of minimum wage law, § 28-12-2 .

Drivers of vehicles, off-duty time required, § 31-27-5 et seq.

39-14-10. [Repealed.]

History of Section. P.L. 1930, ch. 1552, § 3; G.L. 1938, ch. 100, § 3; P.L. 1940, ch. 823, § 1; P.L. 1956, ch. 3829, § 1; G.L. 1956, § 39-14-10 ; P.L. 1965, ch. 193, § 5; Repealed by P.L. 1980, ch. 131, § 1.

Compiler’s Notes.

Former § 39-14-10 concerned transfers of certificates. For present provisions of law, see §§ 39-14-25 , 39-14-26 .

39-14-11. Penalties for violations.

  1. Any person or the officers of any association or corporation who shall violate any provision of §§ 39-14-1 39-14-1 7, 39-14-20(b) , 39-14-25 and 39-14-26 , or any order, rule, or regulation adopted or established under any provision, shall be fined not more than one hundred dollars ($100) or imprisoned not more than sixty (60) days or both, and his or her certificate may be revoked, and the violation shall be a separate and distinct offense for each day during which it shall continue.
  2. The administrator may, in his or her discretion, in addition to seeking criminal sanctions, impose upon its regulated taxicabs and limited public motor vehicles an administrative civil penalty (fine) in addition to revoking or suspending the taxicab’s and limited public motor vehicle’s operating authority as conferred under this chapter. The fine shall not exceed one thousand dollars ($1,000) per each violation of the sections contained in this chapter or the division’s orders, rules, and regulations issued and promulgated thereunder.

History of Section. P.L. 1930, ch. 1552, § 6; G.L. 1938, ch. 100, § 6; P.L. 1956, ch. 3829, § 1; G.L. 1956, § 39-14-11 ; P.L. 1980, ch. 131, § 3; P.L. 2000, ch. 203, § 1; P.L. 2003, ch. 423, § 1.

39-14-12. Administrative powers.

The division is authorized to make such rules and regulations, to hold hearings, and issue certificates as may be required under the provisions of §§ 39-14-1 39-14-14 and §§ 39-14-25 and 39-14-26 .

History of Section. P.L. 1930, ch. 1552, § 8; G.L. 1938, ch. 100, § 8; P.L. 1956, ch. 3829, § 1; G.L. 1956, § 39-14-12 ; P.L. 1980, ch. 131, § 3.

39-14-13. [Repealed.]

History of Section. P.L. 1930, ch. 1552, § 10; G.L. 1938, ch. 100, § 10; P.L. 1956, ch. 3829, § 1; G.L. 1956, § 39-14-13 ; P.L. 1965, ch. 193, § 6; Repealed by P.L. 1969, ch. 240, § 18.

Compiler’s Notes.

Former § 39-14-13 concerned appeals from the division.

39-14-14. Provisions supplemental — Powers of cities and towns.

The provisions of §§ 39-14-1 39-14-14 are hereby declared to be supplementary and in addition to the provisions of other chapters of this title, and of title 31, and of §§ 39-14-15 39-14-23 . The cities and towns may continue to exercise by ordinance all lawful authority heretofore exercised by them, not inconsistent with the express provisions of this chapter.

History of Section. P.L. 1930, ch. 1552, § 11; G.L. 1938, ch. 100, § 11; P.L. 1956, ch. 3829, § 1; G.L. 1956, § 39-14-14 .

Collateral References.

Power of municipal corporation to limit exclusive use of designated lanes or streets to buses and taxicabs. 43 A.L.R.3d 1394.

39-14-14.1. Taximeter requirement.

  1. Every motor vehicle used in the transportation of passengers for compensation in a taxicab service over the publicly used highways of this state shall be equipped with a taximeter. Any motor carrier or operator who shall knowingly and willfully cause a motor vehicle to be operated as a taxicab that is not equipped with a taximeter, or when so equipped the taximeter is not in a recording position for the purpose of registering charges at the time the service is rendered, shall be guilty of a misdemeanor and shall, upon conviction thereof, be fined not to exceed twenty-five dollars ($25.00) for the first offense; and, upon conviction for a second offense, shall be fined not to exceed fifty dollars ($50.00) and shall have his or her certificate suspended for a period not to exceed thirty (30) days; and, upon conviction for a third offense, shall be fined not to exceed one hundred dollars ($100) and shall have his or her certificate suspended for a period not to exceed one hundred eighty (180) days.
  2. A certificate holder authorized to provide taxicab services is not required to utilize the vehicle’s taximeter for registering charges when the transportation services are being coordinated by, and paid for by, a state department, authority, or agency on behalf of clients of the state department, authority, or agency, provided, the alternative method for registering or calculating charges is approved by the division.

History of Section. P.L. 1973, ch. 201, § 1; P.L. 2014, ch. 252, § 1; P.L. 2014, ch. 306, § 1.

39-14-15. Posting of photograph of operator.

The operator of every taxicab or limited public motor vehicle shall have a recent and distinct photograph of himself or herself at least two and one-half inches (21/2") wide and four inches (4") high, together with his or her full name and address, posted in a conspicuous place in the taxicab or limited public motor vehicle operated by him or her.

History of Section. P.L. 1929, ch. 1423, § 2; G.L. 1938, ch. 101, § 2; P.L. 1956, ch. 3830, § 1; G.L. 1956, § 39-14-15 .

39-14-16. Posting of schedule of fares.

The owner of every taxicab or limited public motor vehicle shall post in a conspicuous place, in each of the taxicabs or limited public motor vehicles owned by him or her, a schedule of the fares to be collected from the passengers therein, and the schedule shall be so written and arranged that the passengers can readily determine the exact fare payable by them, and it shall be unlawful to collect any fare otherwise than as appearing on and determinable from the schedule.

History of Section. P.L. 1929, ch. 1423, § 3; G.L. 1938, ch. 101, § 3; P.L. 1956, ch. 3830, § 1; G.L. 1956, § 39-14-16 .

Collateral References.

Validity and construction of statute or ordinance restricting outdoor rate advertising by motels, motor courts, and the like. 80 A.L.R.3d 740.

39-14-17. Display of name of owner — Operator as agent.

The full name of the owner of every taxicab or limited public motor vehicle shall be displayed on each side of the rear doors of the taxicab or limited public motor vehicle in letters at least two inches (2") high and whenever any taxicab or limited public motor vehicle shall be used or operated upon any public highway of this state with the consent of the owner, express or implied, or under any agreement with the owner, express or implied, the operator thereof, if other than the owner, shall, in case of accident, be deemed to be the agent of the owner.

History of Section. P.L. 1929, ch. 1423, § 5; G.L. 1938, ch. 101, § 5; G.L. 1938, ch. 101, § 4; P.L. 1956, ch. 3830, § 1; G.L. 1956, § 39-14-17 .

39-14-18. Proof of financial responsibility.

The owner of every taxicab or limited public motor vehicle shall, before operating or continuing to operate a taxicab or limited public motor vehicle on the public highways of this state, furnish to the division of public utilities and carriers, a certificate of insurance issued by an insurance company authorized to transact business in this state, showing that the owner has a policy insuring him or her against liability for injury to persons and damage to property that may be caused by the operation of the taxicab or limited public motor vehicle, such policy to provide for indemnity in the sum of not less than three hundred thousand dollars ($300,000) combined, single limit, or two hundred fifty thousand dollars ($250,000) per person, five hundred thousand dollars ($500,000) per accident bodily injury and one hundred thousand dollars ($100,000) property damage split limit.

History of Section. P.L. 1929, ch. 1423, § 6; G.L. 1938, ch. 101, § 6; impl. am. P.L. 1939, ch. 660, § 22; G.L. 1938, ch. 101, § 5; P.L. 1956, ch. 3830, § 1; G.L. 1956, § 39-14-18 ; P.L. 1968, ch. 118, § 1; P.L. 1976, ch. 140, § 18; P.L. 1981, ch. 194, § 1; P.L. 1997, ch. 326, § 116; P.L. 2006, ch. 579, § 1.

Cross References.

Exemption from general financial responsibility law, § 31-32-11 .

NOTES TO DECISIONS

Section 31-31-7 Requirements.

Where taxicab owner had the liability insurance coverage required by this section, but the amount thereof was less than that required by § 31-31-7 , such owner was an uninsured motorist within the purview of § 27-7-2.1 to the extent that his liability coverage was less than required by § 31-31-7 . Pickering v. American Employers Ins. Co., 109 R.I. 143 , 282 A.2d 584, 1971 R.I. LEXIS 1035 (1971).

Collateral References.

Owning, leasing, or otherwise engaging in business of furnishing services for taxicabs as basis of tort liability for acts of taxi driver under respondeat superior doctrine. 8 A.L.R.3d 818.

What constitutes “entering” or “alighting” from vehicle within meaning of insurance policy, or statute mandating insurance. 59 A.L.R.4th 149.

39-14-19. Owners exempt from other financial responsibility requirements.

No owner of a taxicab or limited public motor vehicle, who shall have complied with the requirements of § 39-14-18 , shall be required to furnish evidence of financial responsibility under any other provision of law with respect to the taxicab or limited public motor vehicle.

History of Section. P.L. 1930, ch. 1552, § 12; G.L. 1938, ch. 100, § 12; P.L. 1956, ch. 3829, § 1; G.L. 1956, § 39-14-19 .

39-14-20. Licensing of operators.

  1. No person shall operate a taxicab or limited public motor vehicle upon the public highways until the person shall have first obtained an operator’s license as provided for in chapter 10 of title 31.
  2. Further, no person shall operate a taxicab or limited public motor vehicle upon the highways until the person shall have first obtained a special license from the division of public utilities and carriers under such rules and regulations as the division of public utilities and carriers shall require.

History of Section. P.L. 1929, ch. 1423, § 7; G.L. 1938, ch. 101, § 7; impl. am. P.L. 1939, ch. 660, § 22; G.L. 1938, ch. 101, § 6; P.L. 1956, ch. 3830, § 1; G.L. 1956, § 39-14-20 ; P.L. 2003, ch. 423, § 1.

Cross References.

Veteran’s certificate, renewal on discharge, § 30-20-1 .

NOTES TO DECISIONS

Burden of Proof.

While it is incumbent upon the state to prove beyond a reasonable doubt the existence of every essential element where defendant relies on circumstances to exempt him from the effect of the statute, the burden is on such defendant to adduce evidence sufficient to establish the existence of such affirmative defense. State v. Brown, 97 R.I. 95 , 196 A.2d 138, 1963 R.I. LEXIS 132 (1963).

Evidence.

Fact that woman was riding in rear seat of vehicle designed for use as a taxicab was not controlling in determining guilt of driver for operation of taxicab without special license, since evidence relating to the nature of the vehicle, its registration, markings and colors, along with remarks of driver, constituted evidence sufficient to establish that an offense had been committed beyond a reasonable doubt. State v. Brown, 97 R.I. 95 , 196 A.2d 138, 1963 R.I. LEXIS 132 (1963).

Operation Requiring Special License.

The legislature did not intend to proscribe all operation of motor vehicles that are designed and equipped to be used as taxicabs by persons who had not first obtained the special license since, for instance, such vehicle could be operated in the course of maintenance or repair. State v. Brown, 97 R.I. 95 , 196 A.2d 138, 1963 R.I. LEXIS 132 (1963).

Collateral References.

State’s liability to one injured by improperly licensed driver. 41 A.L.R.4th 111.

39-14-21. Penalty for violations.

Any person, firm, or corporation violating any of the provisions of §§ 39-14-18 39-14-20(a) shall, upon conviction, be fined not less than fifty dollars ($50.00) nor more than two hundred dollars ($200) for each violation.

History of Section. P.L. 1929, ch. 1423, § 9; G.L. 1938, ch. 101, § 9; G.L. 1938, ch. 101, § 8; P.L. 1956, ch. 3830, § 1; G.L. 1956, § 39-14-21 ; P.L. 2003, ch. 423, § 1.

39-14-22. Enforcement of provisions.

The administrator of the division of motor vehicles shall enforce the provisions of §§ 39-14-18 , 39-14-19 , 39-14-20(a) , and 39-14-21 .

History of Section. P.L. 1935, ch. 2250, § 75; G.L. 1938, ch. 101, § 10; G.L. 1938, ch. 101, § 9; P.L. 1956, ch. 3830, § 1; G.L. 1956, § 39-14-22 ; P.L. 2003, ch. 423, § 1; P.L. 2020, ch. 79, art. 1, § 7.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

39-14-23. Persons exempt.

The provisions of this chapter shall not apply to any citizen of the town of New Shoreham owning or operating a taxicab or limited public motor vehicle in the town of New Shoreham.

History of Section. P.L. 1929, ch. 1423, § 8; P.L. 1931, ch. 1716; G.L. 1938, ch. 101, § 8; G.L. 1938, ch. 101, § 7; P.L. 1956, ch. 3830, § 1; G.L. 1956, § 39-14-23 ; P.L. 1994, ch. 367 § 1; P.L. 1995, ch. 318, § 1.

39-14-24. Severability.

Each section of this chapter and each part of each section is hereby declared to be an independent section, and the holding of any section or sections or part or parts thereof to be void, ineffective, or unconstitutional, for any cause, shall not be deemed to affect any other section or part thereof.

History of Section. P.L. 1930, ch. 1552, § 13; G.L. 1938, ch. 100, § 13; P.L. 1956, ch. 3829, § 1; G.L. 1938, ch. 101, § 9; P.L. 1956, ch. 3830, § 1; G.L. 1956, § 39-14-24 .

39-14-25. Transfer of certificate.

No certificate shall be sold or transferred until the administrator, upon written application setting forth the purposes, terms, and conditions of the sale or transfer, shall, after a hearing, approve the application. The application shall be accompanied by a fee of two hundred and fifty dollars ($250). All revenues received under this section shall be deposited as general revenues. A proposed transfer of a certificate shall be approved only if the administrator finds the transferee to be fit, willing, and able, financially and otherwise, to render the service described and authorized in the certificate; further, the administrator shall only reissue and transfer a certificate upon evidence that the transferor of the certificate has, during the six-month (6) period immediately prior to receipt of the transfer application, or during the six-month (6) period immediately preceding the filing of a petition for bankruptcy, whether voluntary or involuntary, or the institution of a petition for receivership, wherein the certificates are assets of the bankruptcy or receivership, been rendering the service authorized by the certificate.

History of Section. P.L. 1980, ch. 131, § 2; P.L. 1986, ch. 34, § 2; P.L. 1992, ch. 133, art. 34, § 7; P.L. 1995, ch. 370, art. 40, § 120; P.L. 2007, ch. 73, art. 26, § 4; P.L. 2007, ch. 485, § 4.

39-14-26. Revocation or amendment of certificate.

Any taxi or limited public motor vehicle certificate holder who, during any period of not less than one hundred eighty (180) consecutive days, has failed to render any part of the service authorized by his or her certificate, except for reasonable cause, including bankruptcy, receivership, or other trustee proceedings, shall be deemed to have abandoned that part of the service; and if, after a hearing, the administrator finds the certificate holder has failed to render service in accordance with the certificate, his or her rights thereto to the extent of his or her failure to render service shall be revoked. The administrator may, for sufficient cause shown after a public hearing, amend, suspend, or revoke any certificate issued under this chapter.

History of Section. P.L. 1980, ch. 131, § 2; P.L. 1997, ch. 326, § 116; P.L. 2013, ch. 306, § 1; P.L. 2013, ch. 377, § 1.

Chapter 14.1 Public Motor Vehicles

39-14.1-1. Definitions.

Terms used in this chapter shall be construed as follows, unless another meaning is expressed or is clearly apparent from the language or context:

  1. “Certificate” means a certificate of operating authority issued to a public motor vehicle.
  2. “Charter carrier” means a provider of transportation services to groups such as: lodges, bands, athletic teams, schools, or other travel groups, assembled by someone other than the carrier who or that collectively contracts for the exclusive use of certain equipment for the duration of a particular trip or tour. Charter carrier services shall also include transportation services provided by employment agencies or employers to individuals in the context of providing transportation to and from their place of employment.
  3. “Common carrier,” as used in this chapter, means any person engaging in the business of providing transportation services for compensation to passengers through the use of a public motor vehicle as defined in this chapter.
  4. “Division” means the division of public utilities and carriers.
  5. “Driver” means any person operating a motor vehicle used for the transportation of passengers that he or she owns or is operating with the expressed or implied consent of the owner.
  6. “Person” means and includes any individual, partnership, corporation, or other association of individuals.
  7. “Public motor vehicle” means and includes every motor vehicle for hire, other than a jitney, as defined in § 39-13-1 , or a taxicab or limited public motor vehicle, as defined in § 39-14-1 , used for transporting members of the general public for compensation in unmarked vehicles at a predetermined or prearranged charge to such points as may be directed by the passenger. All vehicles operated under this chapter shall conform to specifications established by the division. Transportation services provided by charter carriers, as defined in this chapter, or by funeral homes, in association with funeral services, and by ambulance companies shall be exempt from this chapter.
  8. “Unmarked vehicles” means motor vehicles that do not display the transportation company’s name, address, or telephone number, or any advertisements or commercial information beyond that included by the vehicle’s manufacturer on the vehicle’s exterior surfaces; provided, however, that public motor vehicles that display markings identifying them as service or courtesy vehicles used by licensed healthcare facilities, assisted-living residences, and adult daycare programs, licensed by the Rhode Island department of health, pursuant to chapters 17 and 17.4 of title 23 and § 23-1-52 , respectively, shall be permitted to operate with such markings; provided the vehicles are registered to these licensed entities; operated by employees of these licensed entities; and that the service provided with these vehicles, when being used as public motor vehicles, is limited to transportation services provided to passengers receiving transportation services through a program funded by the federal government and/or the state of Rhode Island; provided, further, that public motor vehicles providing transportation services under a program funded by the federal government and/or the state of Rhode Island may display temporary and easily removable markings (e.g., magnetic placards) on their vehicles, for the sole purpose of identifying the vehicles as authorized transportation service vehicles operating in association with the publicly funded program.
  9. “Wheelchair-accessible public motor vehicle” means a public motor vehicle designed and equipped to allow the transportation of a person(s) who uses a wheelchair without requiring that person(s) to be removed from the wheelchair, but the public motor vehicle is not restricted to transporting only persons using wheelchairs.

History of Section. P.L. 2002, ch. 182, § 1; P.L. 2007, ch. 163, § 2; P.L. 2007, ch. 266, § 2; P.L. 2012, ch. 312, § 1; P.L. 2012, ch. 334, § 1; P.L. 2015, ch. 216, § 1; P.L. 2015, ch. 233, § 1.

39-14.1-2. Powers of division.

Every person owning or operating a motor vehicle engaged as a public motor vehicle is declared a common carrier and subject to the jurisdiction of the division of public utilities and carriers. The division may prescribe any rules and regulations that it deems proper to ensure adequate, economical, safe, and efficient service. Charter carriers, as defined in this chapter, shall be exempted from the provisions of this chapter.

History of Section. P.L. 2002, ch. 182, § 1.

39-14.1-3. Certificate required for public motor vehicle operation — Application and fee.

No person shall operate a public motor vehicle in any city or town in the state until the person shall have obtained a certificate from the division certifying that the applicant is fit, willing, and able to provide the services as a public motor vehicle in the transportation of passengers. The certificate shall be issued only after written application for it, accompanied by a fee of two hundred fifty dollars ($250), and after a public hearing has been conducted on it. All revenues under this section shall be deposited as general revenues. Certificates issued under this chapter shall be renewed before the close of business on December 31, of each calendar year. The renewal fee shall be one hundred dollars ($100) and shall be submitted with the renewal form. All revenues received under this section shall be deposited as general revenues.

History of Section. P.L. 2002, ch. 182, § 1.

39-14.1-4. Hearing on application.

Upon receipt of an application, the division shall, within a reasonable time, fix the time and place for the hearing. Notice of the hearing shall be given by first-class mail to the applicant and shall be published in a newspaper with statewide distribution.

History of Section. P.L. 2002, ch. 182, § 1.

39-14.1-5. Safety and sanitary condition of vehicles — Inspection.

The division of motor vehicles shall have jurisdiction over the lighting, equipment, safety, and sanitary condition of all public motor vehicles and shall cause an inspection of it to be made before registering it, and from time to time thereafter, as it shall deem necessary for the convenience, protection, and safety of passengers and of the public. A fee of twenty-five dollars ($25.00) shall be paid to the division of motor vehicles for each annual inspection.

History of Section. P.L. 2002, ch. 182, § 1.

39-14.1-6. Operations of public motor vehicles.

No public motor vehicle shall be operated from any taxicab stand on any public highway; nor shall the operator of it transport any passenger for hire unless the transportation is requested by the passenger at an office of the owner of the vehicle, either personally or by telephone and/or other electronic means. When solicited by a prospective customer, the certificate holder or its representative shall quote what the actual charge for the requested transportation service will be prior to picking up the passenger(s).

The division shall establish and set a minimum allowable charge for public motor vehicle services. The minimum allowable charge provisions of this section shall not apply to public motor vehicle service coordinated by, or paid for by, a state department, authority, or agency on behalf of clients of the state department, authority, or agency; provided, however, that the state department, authority, or agency requests the service no later than the day before the service is to be rendered. This exemption shall also apply in cases where the state has contracted with a private company to coordinate the scheduling and provision of such transportation services, provided the funding for such transportation services comes exclusively through a program funded by the federal government and/or the state of Rhode Island.

History of Section. P.L. 2002, ch. 182, § 1; P.L. 2012, ch. 312, § 1; P.L. 2012, ch. 334, § 1; P.L. 2015, ch. 216, § 1; P.L. 2015, ch. 233, § 1.

39-14.1-7. Proof of financial responsibility.

The owner of any public motor vehicle, operating under this section, shall file with the division of public utilities and carriers a certificate of insurance issued by an insurance company authorized to transact business in this state, showing that the owner has a policy insuring the public motor vehicle company against liability for injury to persons and damage to property that may be caused by the operation of the public motor vehicle, this policy to provide for the indemnity in the sum of not less than one million five hundred thousand dollars ($1,500,000) for personal injury and indemnity of not less than one hundred thousand dollars ($100,000) for damage to property.

History of Section. P.L. 2002, ch. 182, § 1.

39-14.1-8. Licensing of operators.

No person shall operate a public motor vehicle upon the public highways until the person shall have first obtained an operator’s license as provided for in chapter 10 of title 31. Further, no person shall operate a public motor vehicle upon the highways until the person shall have first obtained a special license from the division of public utilities and carriers under any rules and regulations that the division of public utilities and carriers shall require.

History of Section. P.L. 2002, ch. 182, § 1.

39-14.1-9. Penalty for violations.

  1. Any person, firm, or corporation, subject to the provisions of this chapter and/or any rules and regulations promulgated under it, who shall knowingly or willfully cause to be done any act prohibited by this chapter, or who shall be guilty of any violation of this chapter or the rules and regulations shall be deemed guilty of a misdemeanor and shall, upon conviction, be subject to a fine not to exceed one thousand dollars ($1,000) or imprisonment for a term not exceeding one year, or both for each offense.
  2. The administrator may, in his or her discretion, in lieu of seeking criminal sanctions, and/or in lieu of revoking or suspending the carrier’s operating authority as conferred under this chapter, impose upon its regulated common carriers an administrative civil penalty (fine). This fine shall not exceed one thousand dollars ($1,000) per each violation of the sections contained in this chapter or the division’s rules and regulations promulgated under it.

History of Section. P.L. 2002, ch. 182, § 1.

39-14.1-10. Certification of business previously established.

The business of operating any public motor vehicle not subject to regulation shall now be subject to the provisions of this chapter. However, businesses that have been providing continuous transportation services akin to the public motor vehicle services defined and described in this chapter since January 1, 2002, shall have ninety (90) days from the passage of this legislation to file a relevant application with the division. These businesses may continue to operate without a certificate during the ninety-day (90) period mentioned above and through the period of time required by the division to issue a final decision on the application.

History of Section. P.L. 2002, ch. 182, § 1.

Chapter 14.2 Transportation Network Company Services

39-14.2-1. Definitions.

Terms in this chapter shall be construed as follows, unless another meaning is expressed or is clearly apparent from the language or context:

  1. “Active TNC driver” means a TNC driver who has provided at least one prearranged ride through the TNC in the preceding ninety (90) days.
  2. “Administrator” means the administrator of the division of public utilities and carriers.
  3. “Digital network” means any online-enabled technology application service, website, or system offered or utilized by a transportation network company that enables the prearrangement of rider transportation with transportation network company drivers.
  4. “Division” means the division of public utilities and carriers.
  5. “Partner” or “partnering” means the act of a TNC operator agreeing to the terms and conditions set forth by a TNC for access to the TNC’s digital network for the purpose of being connected to potential TNC riders seeking TNC services.
  6. “Person” means and includes any individual, partnership, corporation, or other association of individuals.
  7. “Personal vehicle” means a vehicle that is used by a transportation network company driver and is:
    1. Designed to hold no more than seven (7) individuals, including the driver;
    2. Owned, leased, or otherwise authorized for use by the individual; and
    3. Not a jitney, as defined in § 39-13-1 ; a taxicab or limited public motor vehicle, as defined in § 39-14-1 ; a public motor vehicle, as defined in § 39-14.1-1 ; or a common carrier as defined in this title.
  8. “Transportation network company” or “TNC” means an entity licensed by the division pursuant to this chapter that uses a digital network to connect transportation network company riders to transportation network operators who provide prearranged rides. A transportation network company shall not be deemed to control, direct, or manage the personal vehicles or transportation network company drivers that connect to its digital network, except where agreed to by written contract.
  9. “Transportation network company affiliation placard” or “TNC affiliation placard” means a recognizable logo or decal issued by the TNC used to identify personal vehicles whenever the vehicle is available to provide, or is providing, TNC services.
  10. “Transportation network company operator” or “TNC operator” or “TNC driver” means an individual who:
    1. Receives connections to potential riders and related services from a transportation network company in exchange for payment of a fee to the transportation network company; and
    2. Uses a personal vehicle to offer or provide a prearranged ride to TNC riders upon connection through a digital network controlled by a transportation network company in exchange for compensation or payment of a fee.
  11. “Transportation network company rider” or “TNC rider” means a person who uses a transportation network company’s digital network to connect with a transportation network driver who provides prearranged rides to the rider in the driver’s personal vehicle between points chosen by the rider.
  12. “Transportation network company services” or “prearranged ride” means the provision of transportation by a TNC driver to a TNC rider beginning when a TNC driver accepts a TNC rider’s request for a ride made only through a digital network controlled by a transportation network company (TNC), continuing while the TNC driver transports the requesting TNC rider(s), and ending when the last requesting TNC rider(s) departs from the personal vehicle. TNC services and prearranged rides do not include transportation provided using a jitney, as defined in § 39-13-1 ; a taxicab or limited public motor vehicle, as defined in § 39-14-1 ; a public motor vehicle, as defined in § 39-14.1-1 ; a common carrier as defined in this title; or a regional transportation provider. TNC services and prearranged rides do not include a shared-expense carpool or vanpool arrangement or service.

History of Section. P.L. 2016, ch. 346, § 1; P.L. 2016, ch. 367, § 1; P.L. 2020, ch. 79, art. 1, § 8.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

Collateral References.

Liability and regulation of ride-sharing services using social media. 6 A.L.R.7th 1.

39-14.2-2. Not other carriers.

  1. TNCs or TNC drivers are not common carriers, as defined in this title; jitneys, as defined in § 39-13-1 ; taxicabs or limited public motor vehicles, as defined in § 39-14-1 ; or public motor vehicles, as defined in § 39-14.1-1 .
  2. A TNC driver shall not be required to register the vehicle the driver uses for prearranged rides as a commercial or for-hire vehicle.

History of Section. P.L. 2016, ch. 346, § 1; P.L. 2016, ch. 367, § 1.

39-14.2-3. Powers of division.

  1. Every person operating a licensed transportation network company or operating as a licensed transportation network company operator is declared to be subject to the jurisdiction of the division of public utilities and carriers. The division may prescribe rules and regulations consistent with this chapter that are necessary to ensure adequate, safe, and compliant service under this chapter. The division is further authorized to conduct investigations into complaints; conduct investigations initiated on its own; and to hold hearings as it deems necessary to fulfill the proper administration of this chapter.
  2. The division shall require transportation network companies to establish and implement a written policy capping dynamic pricing during disasters and relevant states of emergency and make this policy available on its website or application.

History of Section. P.L. 2016, ch. 346, § 1; P.L. 2016, ch. 367, § 1.

39-14.2-4. Audit procedures.

  1. For the sole purpose of verifying that a TNC is in compliance with the requirements of this chapter and no more often than annually, the division shall have the right to visually inspect a sample of records that the TNC is required to maintain. The sample shall be chosen randomly by the division in a manner agreeable to both parties. The audit shall take place at a mutually agreed upon location in Rhode Island. Any record furnished to the division may exclude information that would tend to identify specific drivers or riders.
  2. In addition to the provisions of subsection (a), in response to a specific complaint against any TNC driver, or upon reasonable suspicion that a violation of this chapter has occurred, the division is authorized to inspect records held by the TNC that are necessary to investigate and resolve the complaint. Any record furnished to the division may exclude information that would tend to identify specific drivers or riders, unless the identity of a driver or rider is relevant to the complaint.
  3. Any records inspected by the division under this chapter shall be held confidential by the division and are not subject to disclosure to a third party by the division without prior written consent of the TNC, and are exempt from disclosure under the Rhode Island Access to Public Records Act, chapter 2 of title 38. Nothing in this section shall be construed as limiting the applicability of any other exemptions under the Rhode Island Access to Public Records Act, chapter 2 of title 38.

History of Section. P.L. 2016, ch. 346, § 1; P.L. 2016, ch. 367, § 1; P.L. 2020, ch. 79, art. 1, § 8.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

39-14.2-5. Permit required of transportation network company.

  1. No person shall operate a TNC in the state until that person shall have applied for and obtained a permit from the division; provided, that any transportation network company operating in the state before the effective date of this chapter [Nov. 3, 2016] may continue to operate in the state until the division creates a permit process as required pursuant to this section, and provides a reasonable period in which to apply and obtain a permit.
  2. No application for a permit may be granted or renewed unless the division determines that, at a minimum, each applicant for a permit has verified the following:
    1. That the applicant has a sufficient oversight process in place to ensure that every vehicle providing transportation network services through its digital network possesses adequate insurance coverage;
    2. That the applicant has submitted to the division information on the internal or third-party background check entity and its data-collection process to ensure compliance with the requirements established in § 39-14.2-7(b) and (c). The required information and the process for submitting such information shall be established through regulations promulgated by the division;
    3. That the applicant has sufficient oversight processes in place to ensure that each TNC driver using the applicant’s digital network:
      1. Has submitted to a background check conducted by the applicant that includes a review of local and national criminal records, sex offender records, and driving records associated with each driver; and
      2. Submitted the application requirement of § 39-14.2-7(b) (1).
  3. The application fee and annual renewal fee shall be five thousand dollars ($5,000) for a TNC with fewer than 50 active TNC drivers; ten thousand dollars ($10,000) for a TNC with at least 50, but fewer than 200, active TNC drivers; and thirty thousand dollars ($30,000) for a TNC with at least 200 active TNC drivers at the time of application or permit renewal and only after the division satisfactorily determines that the applicant meets the requirements for a TNC set forth in this chapter, and as set forth in any rules or regulations promulgated in accordance with § 39-14.2-3 .
  4. All permits issued under this section shall be renewed before the close of business on December 31 of each calendar year. All revenue collected under this section shall be deposited into the transportation network services reserve account as provided in § 39-14.2-6 .
  5. Permits issued under this chapter shall not be transferred without the consent of the division.
  6. The sale or other transfer of a controlling percentage of the capital stock or membership interests of a TNC, whether by merger, stock sale, or otherwise, or the sale or transfer of more than fifty percent (50%) of the value of the assets of a TNC, shall be deemed a change of control, not a transfer, and shall not be subject to the restrictions in subsection (d). The phrase “controlling percentage” means the ownership of, and the right to vote, stock or interests possessing more than fifty percent (50%) of the total, combined voting power of all classes of TNC’s capital stock or interests issued, outstanding, and entitled to vote for the election of directors.

History of Section. P.L. 2016, ch. 346, § 1; P.L. 2016, ch. 367, § 1.

39-14.2-6. Transportation network services administration reserve account — Recovery of administrative and enforcement expenses.

There is hereby created a fund to be known as the transportation network services administration reserve account, a restricted-use account within the division of public utilities and carriers. The account, hereinafter referred to as the “fund,” shall be used for the purpose of providing the financial means for the division to fulfill its regulatory oversight of this chapter; enforcing relevant sections of this chapter; and any other administrative expense deemed necessary by the administrator.

History of Section. P.L. 2016, ch. 346, § 1; P.L. 2016, ch. 367, § 1.

39-14.2-7. Transportation network company operators or TNC operators, TNC drivers.

  1. No individual shall provide TNC services or transport TNC riders in a personal vehicle until the individual shall have first submitted to required, periodic background checks conducted through the TNC in accordance with subsection (b).
  2. Prior to permitting an individual to accept trip requests through its digital network, a TNC shall:
    1. Require the individual to submit an application to the TNC. The application shall include the individual’s name; address; age; driver’s license number; photocopy or electronic copy of the driver’s license; motor-vehicle registration for the personal vehicle that the individual intends to use to provide prearranged rides; automobile liability insurance; and other information as may be required by the TNC;
    2. Conduct, or have a third party accredited by the National Association of Professional Background Screeners conduct, a local and national criminal background check for each applicant that shall include:
      1. A multistate/multi-jurisdictional criminal records locator or other similar commercial nationwide database with validation (primary source search); and
      2. The Dru Sjodin National Sex Offender Public Website; and
    3. Obtain and review, or have a third party obtain and review, a driving history research report for such driving applicant.
  3. The TNC shall certify that the required background checks verify that the applicant meets the following criteria:
    1. Has not had more than three (3) moving violations in the prior three-year (3) period, or one of the following major violations in the prior three-year (3) period:
      1. Attempting to evade the police;
      2. Reckless driving;
      3. Driving on a suspended license; or
      4. Revoked license.
      5. Felony crimes involving property damage and/or theft; or
      6. Acts of violence or felony acts of terror;
    2. Has not, in the past seven (7) years, been convicted of or pleaded nolo contendere to any of the following: (i) Driving under the influence of drugs or alcohol; (ii) Felony fraud; (iii) Sexual offenses; (iv) Use of a motor vehicle to commit a felony;
    3. Is not a match in the Dru Sjodin National Sex Offender Public Website;
    4. Possesses a valid driver’s license;
    5. Possesses proof of registration for the motor vehicle to be used to provide prearranged rides or TNC services;
    6. Possesses proof of automobile liability insurance, that satisfies the financial-responsibility requirement for a motor vehicle under § 31-47-2(13)(i)(A) , for the motor vehicle(s) to be used to provide prearranged rides or TNC services; and
    7. Is at least nineteen (19) years of age.
  4. TNC operators may be affiliated with or may “partner” with more than one properly permitted transportation network company to provide TNC services.

History of Section. P.L. 2016, ch. 346, § 1; P.L. 2016, ch. 367, § 1; P.L. 2020, ch. 79, art. 1, § 8.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

39-14.2-8. Solicitation and acceptance of TNC service requests.

TNC operators shall be strictly prohibited from soliciting or accepting so-called “street hails.”

History of Section. P.L. 2016, ch. 346, § 1; P.L. 2016, ch. 367, § 1.

39-14.2-9. Vehicles to be utilized to provide TNC services.

TNC operators may utilize a personal vehicle to provide licensed TNC services, provided:

  1. The vehicle is owned by, leased to, or otherwise authorized by the legal owner/lessee to be used by a TNC operator to provide TNC services: and
  2. The vehicle is no older than fifteen (15) model years old and is designed to hold no more than seven (7) individuals, including the driver; and
  3. The vehicle meets the vehicle-safety inspection requirements for a private motor vehicle in Rhode Island, or the state in which the vehicle is registered, performed by a facility licensed by the state to conduct such inspections, and shall display an according inspection sticker on the vehicle’s windshield if required to do so by applicable law; and
  4. The vehicle shall have met or surpassed sanitary/acceptability standards established by the TNC with which the TNC operator has “partnered”; and
  5. It shall be prohibited for a TNC operator to connect to a TNC’s digital network for the purpose of accepting solicitations and providing TNC services in a personal vehicle other than a personal vehicle that the TNC operator has registered with the TNC pursuant to § 39-14.2-11 .

History of Section. P.L. 2016, ch. 346, § 1; P.L. 2016, ch. 367, § 1.

39-14.2-10. Electronic identification of TNC vehicles and drivers by TNC.

The TNC’s digital network shall display to passengers requesting TNC services a picture of the TNC driver and the license plate number of the vehicle to be used to provide the requested services before the passenger enters the TNC operator’s vehicle.

History of Section. P.L. 2016, ch. 346, § 1; P.L. 2016, ch. 367, § 1.

39-14.2-11. Transportation network affiliation placards required.

  1. No personal vehicle shall be utilized to provide TNC services until the TNC operator intending to utilize a personal vehicle to provide such TNC services has first registered the vehicle with the TNC and the owner has been issued by the TNC a transportation network affiliation placard.
  2. TNC operators shall be required to display the transportation network affiliation placard in a conspicuous place on the personal vehicle at all times when connected to a TNC’s digital network.

History of Section. P.L. 2016, ch. 346, § 1; P.L. 2016, ch. 367, § 1.

39-14.2-12. Fare charged for TNC services provided.

  1. On behalf of a TNC operator, a TNC may charge a fare for the transportation services provided to the passengers; provided that, if a fare is charged, the TNC shall disclose to the riders the fare or fare calculation method on its website or within the digital network.
  2. The TNC shall provide the potential rider with the option to receive a reasonably accurate estimate of the expected total fare before the passenger enters the TNC operator’s personal vehicle.
  3. Fares for TNC services shall not be paid in cash. Any payment for TNC services shall be made only electronically using the TNC’s digital network or other application.

History of Section. P.L. 2016, ch. 346, § 1; P.L. 2016, ch. 367, § 1.

39-14.2-13. Rights of TNC riders.

  1. Within a reasonable period of time following the completion of a TNC service trip, a TNC shall transmit an electronic receipt to the rider that lists:
    1. The origin and destination of the trip;
    2. The total time and distance of the trip; and
    3. An itemization of the total fare paid, including any additional surcharges.
  2. A TNC shall be prohibited from disclosing a TNC rider’s personally identifiable information to a third party, unless:
    1. Disclosure is pursuant to the publicly disclosed terms of the TNC’s privacy policy or another consent mechanism to which the rider consents;
    2. Disclosure is required by a legal obligation; or
    3. Disclosure is required to protect or defend the terms of use of the service or to investigate violations of those terms. In addition to the foregoing, a TNC shall be permitted to share a rider’s name and/or telephone number with the TNC operator providing prearranged rides or TNC services to such passenger in order to facilitate correct identification of the rider by the TNC operator or to facilitate communication between those two (2) parties.
  3. A TNC rider shall be afforded all of the anti-discrimination protections provided in § 39-14.2-21 .

History of Section. P.L. 2016, ch. 346, § 1; P.L. 2016, ch. 367, § 1.

39-14.2-14. Proof of financial responsibility of transportation network companies.

  1. On or before ninety (90) days after the effective date of this chapter and thereafter, TNC drivers, or a TNC on the driver’s behalf, shall maintain primary automobile insurance that:
    1. Recognizes that the driver is a transportation network company driver or otherwise uses a vehicle to transport riders for compensation and covers the driver:
      1. While the driver is logged on to the transportation network company’s digital network; or
      2. While the driver is engaged in a prearranged ride or providing transportation network company services.
  2. The following automobile liability insurance requirements shall apply during the time a TNC driver is logged into the TNC’s digital network and available to receive requests for transportation but is not providing prearranged rides:
    1. Primary automobile liability insurance in the amount of at least fifty thousand dollars ($50,000) for death and bodily injury per person, one hundred thousand dollars ($100,000) for death and bodily injury per incident, and twenty-five thousand dollars ($25,000) for property damage.
    2. Uninsured and underinsured motorist coverage to the extent required by § 27-7-2.1 .
    3. The coverage requirements of this subsection (b) may be satisfied by any of the following:
      1. Automobile insurance maintained by the TNC driver; or
      2. Automobile insurance maintained by the TNC; or
      3. Any combination of subsections (b)(3)(i) and (b)(3)(ii).
  3. The following automobile liability insurance requirements shall apply while a TNC driver is providing prearranged rides:
    1. Primary automobile liability insurance that provides at least one million five hundred thousand dollars ($1,500,000) for death, bodily injury, and property damage;
    2. Uninsured and underinsured motorist coverage to the extent required by § 27-7-2.1 ;
    3. The coverage requirements of this subsection (c) may be satisfied by any of the following:
      1. Automobile liability insurance maintained by the TNC driver; or
      2. Automobile liability insurance maintained by the TNC; or
      3. Any combination of subsections (c)(3)(i) and (c)(3)(ii).
  4. If insurance maintained by a TNC driver to fulfill the insurance requirements of subsections (b) and (c) of this section has lapsed or does not provide the required coverage, insurance maintained by a TNC shall provide the coverage required by this section beginning with the first dollar of a claim and the insurer shall have the duty to defend such claim.
  5. Coverage under an automobile insurance policy maintained by the transportation network company shall not be dependent on a personal automobile insurer first denying a claim nor shall a personal automobile insurance policy be required to first deny a claim.
  6. Insurance required by this section may be placed with an insurer licensed under § 27-2.4-1 et seq., or with a surplus lines insurer eligible under § 27-3-40 that has a credit rating of no less than “A-” from A.M. Best, or “A” from Demotech, or similar rating from another rating agency recognized by the Rhode Island insurance division.
  7. Insurance required by this section shall be deemed to satisfy the financial responsibility requirement for a motor vehicle under § 31-47-2(13)(i)(A) .
  8. A TNC driver shall carry physical or electronic proof of coverage satisfying subsections (b) and (c) with him or her at all times during his or her use of a vehicle in connection with a TNC’s digital network. In the event of an accident, a TNC driver shall provide this insurance coverage information to the directly interested parties, automobile insurers, and investigating police officers, upon request pursuant to § 31-47-2(15) . Upon such request, a TNC driver shall also disclose to directly interested parties, automobile insurers, and investigating police officers, whether they were logged on to the TNC’s digital network or providing prearranged rides at the time of an accident.

History of Section. P.L. 2016, ch. 346, § 1; P.L. 2016, ch. 367, § 1.

39-14.2-15. TNC and insurer disclosure requirements.

  1. The TNC shall disclose, in writing, to TNC drivers the following before they are allowed to accept a request for prearranged rides on the TNC’s digital network:
    1. The insurance coverage, including the types of coverage and the limits for each coverage, that the TNC provides while the TNC driver uses a personal vehicle in connection with a TNC’s digital network; and
    2. That the TNC driver’s own automobile insurance policy might not provide any coverage while the driver is logged on to the TNC’s digital network and is available to receive transportation requests or is engaged in a prearranged ride, depending on its terms.
  2. Insurers that write automobile liability insurance in Rhode Island may exclude any and all coverage afforded under the policy issued to an owner or operator of a personal vehicle for any loss or injury that occurs while a TNC driver is logged on to a TNC’s digital network or while a TNC driver provides a prearranged ride. This right to exclude all coverage may apply to any coverage included in an automobile insurance policy including, but not limited to:
    1. Liability coverage for bodily injury and property damage;
    2. Uninsured and underinsured motorist coverage;
    3. Medical payments coverage;
    4. Comprehensive physical damage coverage;
    5. Collision physical damage coverage; and
    6. Personal injury protection. Such exclusions shall apply notwithstanding any requirement under § 31-47-2(13)(i)(A) . Nothing in this section shall be construed as to require an insurer to use any particular policy language or reference to this section in order to exclude any and all coverage for any loss or injury that occurs while a driver is logged on to a TNC’s digital network or while a TNC driver provides a prearranged ride. Nothing in this section shall be deemed to preclude an insurer from providing primary or excess coverage by contract or endorsement for the TNC driver’s personal vehicle while the TNC driver is logged on to a digital network or while the driver is engaged in a prearranged ride.
  3. Automobile insurers that exclude the coverage described in § 39-14.2-14(b) and (c) shall have no duty to defend or indemnify any claim expressly excluded thereunder. Nothing in this chapter shall be deemed to invalidate or limit an exclusion contained in a policy including any policy in use or approved for use in Rhode Island prior to the enactment of this chapter that excludes coverage for vehicles used to carry persons or property for a charge or available for hire by the public. An automobile insurer that defends or indemnifies a claim against a driver that is excluded under the terms of its policy, shall have a right of contribution against other insurers that provide automobile insurance to the same driver in satisfaction of the coverage requirements of § 39-14.2-14(b) and (c) at the time of loss.
  4. In a claims coverage investigation, a TNC shall immediately provide upon request by directly involved parties or any insurer of the transportation network company driver, if applicable, the precise times that a transportation network company driver logged on and off of the TNC’s digital network in the twelve-hour (12) periods immediately preceding and immediately following the accident. Any insurer providing coverage under § 39-14.2-14(b) and (c) shall disclose upon request by any other such insurer involved in the particular claim, the applicable coverage, exclusions, and limits provided under any automobile insurance maintained under § 39-14.2-14(b) and (c).

History of Section. P.L. 2016, ch. 346, § 1; P.L. 2016, ch. 367, § 1.

39-14.2-16. Limitations on TNCs.

TNC drivers shall be independent contractors and not employees of the TNC if they are determined to meet federal and state law and regulation relating to independent contractors, including, but not limited to, 26 U.S.C. § 3401(a), 26 U.S.C. § 3402(a)(1), §§ 28-29-17.1 and 28-42-7 , and the TNC and TNC driver agree in writing that the TNC driver is an independent contractor of the TNC.

History of Section. P.L. 2016, ch. 346, § 1; P.L. 2016, ch. 367, § 1.

39-14.2-17. Alcohol/drug use strictly prohibited.

  1. The TNC shall implement a zero-tolerance policy regarding a TNC driver’s activities while accessing the TNC’s digital network. The zero-tolerance policy shall address the use of drugs or alcohol while a TNC driver is providing prearranged rides or is logged into the TNC’s digital network but is not providing prearranged rides, and the TNC shall provide notice of this policy on its website or mobile application, as well as procedures to report a complaint about a TNC driver with whom a rider was matched and whom the rider reasonably suspects was under the influence of drugs or alcohol during the course of the trip.
  2. TNCs shall provide notice on their website or digital network how a rider may report a complaint about a TNC operator who the passenger reasonably suspects was under the influence of drugs or alcohol during the course of a recently completed prearranged trip.
  3. Upon receipt of such a rider complaint alleging a violation of the zero tolerance policy, the TNC shall suspend such TNC operator’s access to the digital network as soon as possible and shall conduct an investigation into the reported incident. The suspension of access shall last until the investigation is complete. The TNC shall maintain records relevant to the enforcement of this requirement for a period of at least two (2) years from the date that a rider complaint is received by the TNC.

History of Section. P.L. 2016, ch. 346, § 1; P.L. 2016, ch. 367, § 1.

39-14.2-18. Controlling authority.

All provisions of this chapter, with the exception of § 39-14.2-14 , are hereby declared to be the sole jurisdiction of the division; § 39-14.2-14 is hereby declared to be the sole jurisdiction of the division and the department of business regulation. Cities, towns, and other local entities in the state are expressly prohibited from:

  1. Establishing any licensing or registration requirement or imposing any charge, fee, or tax on transportation network companies, transportation network company operators, or personal vehicles;
  2. Requiring a TNC driver to obtain a business license or any other type of similar authorization to operate within the jurisdiction; or
  3. Subjecting transportation network companies to the city, town, or local entity’s rate, entry, operation, or other requirements; provided, however, that cities and towns may continue to impose excise taxes upon the legal owners of vehicles used to provide TNC services in a manner consistent with previous such taxation of private motor vehicles.

History of Section. P.L. 2016, ch. 346, § 1; P.L. 2016, ch. 367, § 1.

39-14.2-19. Airport Corporation Authority.

Notwithstanding the provisions of § 39-14.2-18 , the Rhode Island airport corporation, or any successor entity authorized to oversee and control the property of Rhode Island T.F. Green International Airport and any other state airport, shall have the authority to establish reasonable regulations governing transportation network company (TNC) operators offering TNC services on airport property through proper amendment of the corporation’s ground transportation rules or by entering into operating agreements with TNCs.

History of Section. P.L. 2016, ch. 346, § 1; P.L. 2016, ch. 367, § 1; P.L. 2021, ch. 32, § 8, effective June 1, 2021; P.L. 2021, ch. 36, § 8, effective June 1, 2021.

Compiler's Notes.

P.L. 2021, ch. 32, § 8, and P.L. 2021, ch. 36, § 8 enacted identical amendments to this section.

39-14.2-20. Business records to be maintained, retained by transportation network companies.

  1. A TNC shall maintain individual trip records that detail the date, time, pick-up location, drop-off location, distance traveled, length of time of the trip, and total fare charged for every TNC service it coordinates in the state. Such records shall be maintained for a minimum of two (2) years from December 31 of the calendar year in which the services were rendered.
  2. A TNC shall maintain detailed, TNC-operator records that include the dates and times the operator “logs into” and “logs out of” the TNC’s digital network, the number of TNC service trips the operator performs through the TNC’s digital network, and the total miles driven and fares collected. Additionally, the TNC shall maintain records of all passenger complaints lodged against each TNC operator and the results of any investigation or actions taken as a result of such complaints. Such records shall be maintained for a minimum of two (2) years from December 31 of the calendar year in which the services were rendered.

History of Section. P.L. 2016, ch. 346, § 1; P.L. 2016, ch. 367, § 1.

39-14.2-21. Anti-discrimination — Handicapped accessibility.

  1. A transportation network company shall adopt a policy of nondiscrimination based on the rider’s race, color, national origin, religious belief or affiliation, gender, physical disability, age, sexual orientation/identity, gender identity, or the pick-up location or drop-off location requested by the rider. TNCs and TNC operators shall not impose any additional charge(s) for providing services in compliance with this section.
  2. TNC drivers shall comply with all applicable laws regarding nondiscrimination against riders or potential riders on the basis of the rider’s race, color, national origin, religious belief or affiliation, gender, physical disability, age, sexual orientation/identity, gender identity, or the pick-up location or drop-off location requested by the rider.
  3. TNC operators shall not deny or refuse service to any rider accompanied by a service animal, nor shall a TNC operator impose any additional charge for the transportation of any service animal accompanying a TNC rider. Service animals shall be allowed to accompany the TNC rider in the passenger compartment of the vehicle without any conditions or restrictions, so long as the animal does not impede the safe operation of the vehicle.

History of Section. P.L. 2016, ch. 346, § 1; P.L. 2016, ch. 367, § 1.

39-14.2-22. Penalties for violations by TNCs or TNC operators.

  1. The administrator may impose civil sanctions upon any TNC or TNC operator subject to the applicable provisions of this chapter and/or any rules and regulations promulgated under it, who or that shall knowingly or willfully cause to be done any act prohibited by applicable sections of this chapter, or who or that shall be guilty of any violation of this chapter or the rules and regulations. The sanctions may include a civil penalty (fine) or the suspension or revocation of the TNC’s license.
  2. If the division finds that a TNC has failed to comply with the provisions of § 39-14.2-7 , the division shall conduct an audit of an additional sample of TNC records as determined by the division.
    1. Upon a TNC’s first violation of § 39-14.2-7 , the division shall fine the TNC five thousand dollars ($5,000). Upon any additional violations after a three-year (3) period during which the TNC has not violated § 39-14.2-7, the division shall fine the TNC seven thousand five hundred dollars ($7,500).
    2. Upon a TNC’s second violation of § 39-14.2-7 within three (3) years, the division shall fine the TNC ten thousand dollars ($10,000) and shall require the TNC to produce a remediation plan to meet the requirements of § 39-14.2-7.
    3. Upon a TNC’s third violation of § 39-14.2-7 within three (3) years, the division shall assume responsibility for implementing the provisions of § 39-14.2-7 on behalf of the TNC for at least six (6) months and until the TNC has provided a remediation plan and the division has determined that the TNC will successfully achieve full compliance with this chapter. At minimum, and subject to such other requirements as the division may establish by regulation, the division shall conduct required background checks for the TNC’s drivers. Any additional costs incurred by the division as a result of implementing this section shall be reimbursed by the TNC.
  3. Nothing in this section shall be construed to limit the division’s authority to fine TNCs or TNC drivers or suspend or revoke TNC licenses.

History of Section. P.L. 2016, ch. 346, § 1; P.L. 2016, ch. 367, § 1.

Chapter 15 Water Supply

39-15-1. Power of condemnation for water supply purposes — Changes in highways.

Whenever the electors of any town, qualified to vote upon questions of taxation or involving the expenditure of money, shall have voted, at a town meeting called for that purpose, to provide a water supply for the inhabitants of the town, or for some part thereof; or whenever any town shall enter or shall have entered into any contract with any person or corporation to furnish the town with a water supply (a contract which towns are hereby authorized to make), then the town, or the person or corporation bound to fulfill the contract, as the case may be, may take, condemn, hold, use, and permanently appropriate any land, water, rights of water and of way, necessary and proper to be used in furnishing or enlarging any such water supply, including sites and materials for dams, reservoirs, pumping stations, and for coal houses, with a right-of-way thereto, and a right-of-way for water pipes along and across public highways, and through private lands, and including also lands covered or to be flowed by water, or to be in any other way used in furnishing, enlarging, or maintaining any water supply. And if any change in any highway shall be required for the accommodation of the water supply, then the town, person, or corporation may alter the grade of the highway or construct a bridge therein, under the direction of the town council of the town where the change is made, and as far as may be needful, first giving bond with surety satisfactory to a justice of the superior court, if requested, conditioned to reimburse the town for every expense and damage occasioned by a change of grade or other change in the highway.

History of Section. G.L. 1896, ch. 123, § 1; C.P.A. 1905, § 1223; G.L. 1909, ch. 149, § 1; G.L. 1923, ch. 179, § 1; G.L. 1938, ch. 637, § 1; G.L. 1956, § 39-15-1 .

Cross References.

Incorporation under business corporation act, § 7-1.2-101 et seq.

Public service corporation tax, § 44-13-1 et seq.

Safety of drinking water supply, § 46-13-1 et seq.

Comparative Legislation.

Water supplies:

Conn. Gen. Stat. § 25-32 et seq.

Mass. Ann. Laws ch. 40, § 38 et seq.

NOTES TO DECISIONS

In General.

A town is authorized by the provisions of this statute to construct waterworks of its own. Smith v. Westerly, 19 R.I. 437 , 35 A. 526, 1896 R.I. LEXIS 55 (1896).

Construction.

The enactment of chapter 16 of this title did not prevent the town of East Greenwich from acting under this chapter where the Kent County Water District, at least for the time being, was not able to do so. Opinion to Senate, 90 R.I. 224 , 157 A.2d 113, 1960 R.I. LEXIS 3 (1960).

— Delegation of Power.

Legislative power to condemn may be delegated to municipal corporations, to private corporations performing a public service, or to legislative commissions as agents of the state or a municipality. Newport v. Newport Water Corp., 57 R.I. 269 , 189 A. 843, 1937 R.I. LEXIS 96 (1937).

— Necessity and Expediency.

The necessity and expediency of the taking for condemnation, as distinguished from the nature of the use to which the property taken is to be devoted, is purely a legislative question. Newport v. Newport Water Corp., 57 R.I. 269 , 189 A. 843, 1937 R.I. LEXIS 96 (1937).

A municipality may decide the necessity and extent of condemnation under this chapter against a water corporation, ex parte, without a hearing, and without appeal from its decision to an impartial tribunal. Newport v. Newport Water Corp., 57 R.I. 269 , 189 A. 843, 1937 R.I. LEXIS 96 (1937).

— Person Having Contract With Town.

Where there was a contract with the town at the time the proceeding was commenced, it was sufficient although the contract expired before the decision in the case. Bristol County Water Co. v. Oliviera, 87 R.I. 356 , 141 A.2d 443, 1958 R.I. LEXIS 64 (1958).

— Petition.

Petition under this chapter was by city, rather than by the mayor and board of aldermen, where brought by and on behalf of the city and signed for the city by the mayor and board, and any defect in the petition was waived by a failure to object in the superior court. Newport v. Newport Water Corp., 57 R.I. 269 , 189 A. 843, 1937 R.I. LEXIS 96 (1937).

— Public Use.

What constitutes public use to justify condemnation is a judicial question. Newport v. Newport Water Corp., 57 R.I. 269 , 189 A. 843, 1937 R.I. LEXIS 96 (1937).

— Transfer From One Owner to Another.

Legislative or delegated authority has right to take by condemnation from one person property already devoted to a public use and give it to another to be devoted to the same identical public use. Newport v. Newport Water Corp., 57 R.I. 269 , 189 A. 843, 1937 R.I. LEXIS 96 (1937).

Applicability.

This section has no application to proceedings to acquire land to build a dike for the protection of a reservoir where the reservoir has already been built and the pipes laid. Bristol County Water Co. v. Oliviera, 87 R.I. 356 , 141 A.2d 443, 1958 R.I. LEXIS 64 (1958).

This chapter, while it does not apply to cities, is made applicable to some extent to the city of Newport in condemning water corporation by virtue of P.L. 1933, ch. 2072, § 1, as amended by P.L. 1934, ch. 2162. Newport v. Newport Water Corp., 57 R.I. 269 , 189 A. 843, 1937 R.I. LEXIS 96 (1937).

Under this section it is the electors qualified to vote in town meeting who decide whether the town shall provide a water supply, but not where compliance was impossible, as in a city that does not transact its financial affairs in town meeting, and where the legislature has delegated the power to a representative council. Newport v. Newport Water Corp., 57 R.I. 269 , 189 A. 843, 1937 R.I. LEXIS 96 (1937).

Condemnation.

The power to condemn inheres in sovereignty, limited in its exercise by the Constitution, but in the absence of such limitation it is exclusively a legislative power. Newport v. Newport Water Corp., 57 R.I. 269 , 189 A. 843, 1937 R.I. LEXIS 96 (1937).

The only limitation on the power of condemnation by the general assembly is that private property may be taken only for public uses and upon payment of just compensation. Newport v. Newport Water Corp., 57 R.I. 269 , 189 A. 843, 1937 R.I. LEXIS 96 (1937).

Powers of Council.

Town council has no power to grant an exclusive franchise or to agree to buy water from a company, despite its power to grant the right to lay pipes. Westerly Waterworks Co. v. Westerly, 80 F. 611, 1897 U.S. App. LEXIS 3011 (C.C.D.R.I. 1897).

— Ratification.

Vote of town meeting authorizing the purchase of waterworks in accordance with contract previously entered into by town council did not constitute a ratification of the contract insofar as it purported to grant an exclusive franchise. Westerly Waterworks Co. v. Westerly, 80 F. 611, 1897 U.S. App. LEXIS 3011 (C.C.D.R.I. 1897).

Collateral References.

Eminent Domain: Right to enter land for preliminary survey or examination. 29 A.L.R.3d 1104.

Propriety of injunctive relief against diversion of water by municipal corporation or public utility. 42 A.L.R.3d 426.

Validity of zoning ordinance deferring residential development until establishment of public services in area. 63 A.L.R.3d 1184.

39-15-2. Payment for property taken.

Whenever any property or estate or rights of property shall be taken under the provisions of § 39-15-1 , the owner thereof, including all persons having property rights therein, shall be paid therefor according to their respective interests, by the town, person, or corporation, taking the property or estate or rights of property.

History of Section. G.L. 1896, ch. 123, § 2; G.L. 1909, ch. 149, § 2; G.L. 1923, ch. 179, § 2; G.L. 1938, ch. 637, § 2; G.L. 1956, § 39-15-2 .

NOTES TO DECISIONS

Compensation Required.

Property may not be taken without the payment of or securing the payment of just compensation. Newport v. Newport Water Corp., 57 R.I. 269 , 189 A. 843, 1937 R.I. LEXIS 96 (1937).

— Determination of Amount.

What is just compensation is a judicial question exclusively. Newport v. Newport Water Corp., 57 R.I. 269 , 189 A. 843, 1937 R.I. LEXIS 96 (1937).

Security for Compensation.

Where condemnation is by or for the benefit of the state or a municipality, it is not essential that payment be made before taking if an adequate and certain remedy for payment is provided for against the state or municipality. Newport v. Newport Water Corp., 57 R.I. 269 , 189 A. 843, 1937 R.I. LEXIS 96 (1937).

39-15-3. Riparian rights as to tidelands.

If any land covered by tidewater shall be taken under this chapter, then damages to the rights of every riparian owner and of every lessee of the land, if any, shall be awarded under the provisions hereof the same as for any other right of property.

History of Section. G.L. 1896, ch. 123, § 9; G.L. 1909, ch. 149, § 9; G.L. 1923, ch. 179, § 9; G.L. 1938, ch. 637, § 9; G.L. 1956, § 39-15-3 .

39-15-4. Bond to pay damages for property taken.

Whenever any property or estate or rights of property shall be taken under the provisions of this chapter for either of the purposes described in § 39-15-2 or § 39-15-3 , and the person or corporation shall then, or at any time thereafter, be required by the owner of the property, estate, or right taken, to give bond with surety for the payment therefor, the person or corporation shall, without delay, give bond to the owner, with surety satisfactory to a justice of the superior court, conditioned to pay to the owner all damages that may be awarded him or her for the estate so taken.

History of Section. G.L. 1896, ch. 123, § 3; C.P.A. 1905, § 1223; G.L. 1909, ch. 149, § 3; G.L. 1923, ch. 179, § 3; G.L. 1938, ch. 637, § 3; G.L. 1956, § 39-15-4 ; P.L. 1997, ch. 326, § 117.

39-15-5. Plat and description of property condemned.

The town, person, or corporation taking any property, estate, or right of property under the provisions of this chapter, shall first cause a plat with a description thereof to be made, which, with a certificate of the taking of the property, estate, or right of property, shall contain a list of the owners thereof and of the persons interested therein, so far as the owners or person interested therein may be known to the town, person, or corporation taking the property, estate, or right of property, and which shall be filed in the office of the clerk of the superior court for the county where the property or estate is located.

History of Section. G.L. 1896, ch. 123, § 4; C.P.A. 1905, § 1222; G.L. 1909, ch. 149, § 4; G.L. 1923, ch. 179, § 4; G.L. 1938, ch. 637, § 4; G.L. 1956, § 39-15-5 .

39-15-6. Notice of condemnation proceedings.

Upon the filing of any certificate, the clerk shall forthwith issue a notice to the several persons named in the certificate which shall contain the substance of the certificate, and also a notice of a time and place when the persons may appear in the court and be heard in reference to the necessity for the taking and the appointment of commissioners to appraise the damages accruing to them by virtue of the taking of their property, estate, or rights of property; and the clerk shall, for four (4) successive weeks thereafter, cause to be advertised in each issue of some newspaper published in the county a copy of the notice, requiring all persons interested in the premises to appear at the time and place, if they see fit, to be heard in the premises. The personal notice upon known parties shall be served as soon as may be, and at least twenty (20) days, before the time of the hearing, by some officer authorized to serve process or by some disinterested person.

History of Section. G.L. 1896, ch. 123, § 4; G.L. 1909, ch. 149, § 4; G.L. 1923, ch. 179, § 4; G.L. 1938, ch. 637, § 4; G.L. 1956, § 39-15-6 .

39-15-7. Hearing on condemnation — Commissioners to appraise damages — Award.

At the time mentioned in the notice given under the authority of § 39-15-6 , or at such adjournment from the time as the court shall order, the court, after hearing the parties in interest therein who may desire to be heard, shall first adjudge whether the taking of the property, estate, or rights in question is a public necessity, and, if that shall be adjudged affirmatively, the property and rights of property shall from that time be deemed to have been taken, and the court shall then appoint three (3) suitable persons to be commissioners to appraise the damages sustained by any person whose property, estate, or rights of property shall have been taken for either or any of the purposes authorized in this chapter. The commissioners, after being duly sworn to the faithful discharge of their trust and giving due notice to the parties in interest, shall proceed to hear the parties with their allegations and proofs, and to examine the premises, and shall make up and return their award in the premises to the clerk of the superior court from which they received their appointment, with their fees marked thereon, which fees, being first allowed by the court, shall be forthwith paid by the town, person, or corporation taking the property, estate, or rights of property embraced in the award.

History of Section. G.L. 1896, ch. 123, § 5; C.P.A. 1905, § 1216; G.L. 1909, ch. 149, § 5; G.L. 1923, ch. 179, § 5; G.L. 1938, ch. 637, § 5; G.L. 1956, § 39-15-7 ; P.L. 1997, ch. 326, § 117.

NOTES TO DECISIONS

Necessity and Expediency.

The necessity and expediency of the taking for condemnation, as distinguished from the nature of the use to which the property taken is to be devoted, is a purely legislative question. Newport v. Newport Water Corp., 57 R.I. 269 , 189 A. 843, 1937 R.I. LEXIS 96 (1937).

Valuation of Property.

Date for establishing value of land taken is the date of the adjudication that the taking was a public necessity, not the date that the certificate was filed; hence commissioners properly increased value of land where land increased in value after the filing of the certificate. In re Condemnation of Certain Land, 19 R.I. 382 , 33 A. 523, 1896 R.I. LEXIS 2 (1896).

Commissioners in fixing value of land taken were not entitled to consider value of one-half of the street in front of the abutting landowner, since by awarding the full market value of the abutting lot, they also awarded the value of the land in the street. In re Condemnation of Certain Land, 19 R.I. 382 , 33 A. 523, 1896 R.I. LEXIS 2 (1896).

39-15-8. Jury trial on damages.

Upon the payment of the fees provided in § 39-15-7 , the clerk of the superior court shall open the report of the commissioners, and the report may be examined by any person interested in the report. Any person or party aggrieved by any award of damages by the commissioners may claim a jury trial upon any item of damages thereby awarded, and may file his or her claim for the trial at any time within three (3) months from the opening of the report. The claim shall stand for trial by jury upon a proper issue based upon the claim, as other cases upon the docket of the court, and shall be tried in the court in every respect as other cases are there tried, including the right to object to rulings and to move for new trials for cause; and execution may be awarded thereon as in other cases; but if the party claiming the jury trial shall not therein obtain an award for damages more favorable to him or her than that given by the commissioners, he or she shall pay costs to the adverse party.

History of Section. G.L. 1896, ch. 123, § 6; C.P.A. 1905, § 1216; G.L. 1909, ch. 149, § 6; G.L. 1923, ch. 179, § 6; G.L. 1938, ch. 637, § 6; G.L. 1956, § 39-15-8 .

39-15-9. Judgment on award or verdict.

Whenever the report of the commissioners shall be received by the court and no right of trial by jury shall be claimed thereon, the court shall enter judgment in favor of the several claimants for the damages awarded to them respectively; and so shall enter judgment upon the verdict of the jury, subject to the right to apply for new trials for cause, upon the rendition of the verdict; and the court shall forthwith grant execution upon all such judgments.

History of Section. G.L. 1896, ch. 123, § 8; G.L. 1909, ch. 149, § 8; G.L. 1923, ch. 179, § 8; G.L. 1938, ch. 637, § 8; G.L. 1956, § 39-15-9 .

39-15-10. Amendment of proceedings.

Any proceeding in taking any property or estate or rights of property, or in claiming damages therefor, or other proceeding under the provisions of this chapter, may at any stage of the proceeding, with the leave of the court, be amended upon such terms and conditions as to the court may appear to be just and proper.

History of Section. G.L. 1896, ch. 123, § 7; G.L. 1909, ch. 149, § 7; G.L. 1923, ch. 179, § 7; G.L. 1938, ch. 637, § 7; G.L. 1956, § 39-15-10 .

39-15-11. Grant of right to lay pipes and build reservoirs — Exemption from taxation.

The town council of any town or the city council of any city may grant to any person or corporation the right to lay water pipes in any of the public highways of the town or city for supplying the inhabitants of the town or city with water, and may consent to the erection, construction, and the right to maintain a reservoir or reservoirs within the town or city, for such time and upon such terms and conditions as they may deem proper, including therein, the power and authority to exempt the pipes and reservoirs and the land and works connected therewith from taxation.

History of Section. G.L. 1896, ch. 40, § 37; G.L. 1909, ch. 50, § 39; G.L. 1923, ch. 51, § 42; G.L. 1938, ch. 333, § 42; G.L. 1956, § 39-15-11 .

Cross References.

Contamination of drinking water, § 46-14-1 et seq.

Pollution of water, § 46-12-1 et seq.

NOTES TO DECISIONS

Exclusive Franchise.

A town council cannot, under the authority of this section, enter into a contract which grants an exclusive right to lay water pipes in street for the purpose of furnishing a water supply to the residents. Smith v. Westerly, 19 R.I. 437 , 35 A. 526, 1896 R.I. LEXIS 55 (1896); Westerly Waterworks Co. v. Westerly, 80 F. 611, 1897 U.S. App. LEXIS 3011 (C.C.D.R.I. 1897).

Ratification.

A town does not ratify a contract between the town council and a private corporation granting exclusive right to use streets for furnishing of water supply merely because it recognizes some rights under the contract. Smith v. Westerly, 19 R.I. 437 , 35 A. 526, 1896 R.I. LEXIS 55 (1896).

A contract granting a private corporation the exclusive right to lay water pipes in streets was not ratified by subsequent charter granted to the corporation where the charter made no special reference to the contract. Smith v. Westerly, 19 R.I. 437 , 35 A. 526, 1896 R.I. LEXIS 55 (1896).

39-15-12. Liability of landowner for water charges — Lien.

The owner of any house, building, tenement, or estate shall be liable for the payment of the price or rent or rates fixed by any town, city, or incorporated fire district or water district for the use of water furnished by such town, city, fire district, or water district to the owner or occupant of the house, building, tenement, or estate; and the price, rent, or rates shall be a lien upon the house, building, tenement, and estate in the same way and manner as taxes assessed on real estate are liens, and, if not paid as required by the town, city, fire district, or water district, shall be collected in the same manner that taxes assessed on real estate are by law collected; provided, however, that the city of Cranston or any agency thereof may charge interest on delinquent payments at a rate of not more than twelve percent (12%) per annum; provided, however, that the city of Woonsocket or any agency thereof may charge interest on delinquent payments at a rate of not more than eighteen percent (18%) per annum.

History of Section. P.L. 1909, ch. 428, § 1; G.L. 1923, ch. 301, § 31; G.L. 1938, ch. 449, § 1; P.L. 1940, ch. 949, § 1; G.L. 1956, § 39-15-12 ; P.L. 1982, ch. 143, § 1; P.L. 1982, ch. 343, § 1.

Cross References.

Assignment for benefit of creditors, effect, § 10-4-6 .

Bypassing meters, penalty, § 11-35-7 .

Excessive charges, penalty, § 11-35-10 .

False meter, penalty, § 11-35-10 .

Interference with meters, penalty, § 11-35-6 .

NOTES TO DECISIONS

Bankruptcy Priority.

Even if this statutory lien for water charges is construed to be in the nature of a property tax, such a tax does not constitute a debt entitled to priority against a nonowner debtor in a bankruptcy proceeding. In re Mel-Ric Plating, Inc., 37 B.R. 560, 1984 Bankr. LEXIS 6145 (Bankr. D.R.I. 1984).

Collateral References.

Discontinuance of service for unpaid charges notwithstanding existence of deposit. 43 A.L.R.2d 1272.

Party walls and party-wall agreements as affecting marketability of title. 81 A.L.R.2d 1020.

Regulation making payment for water a charge upon property irrespective of person who enjoyed service. 19 A.L.R.3d 1227.

Right of municipality to refuse services provided by it to resident for failure of resident to pay for other unrelated services. 60 A.L.R.3d 714.

Right of public utility to deny service at one address because of failure to pay for past service rendered at another. 73 A.L.R.3d 1292.

Right to cut off water supply because of failure to pay sewer service charge. 26 A.L.R.2d 1359.

Chapter 15.1 Water Suppliers Subject to Commission Rate Regulation

39-15.1-1. Purposes.

The purposes of this chapter are to:

  1. Augment current principles for setting the rates of public utilities that are water suppliers that are subject to commission rate regulation in a manner that facilitates:
    1. Managing demand, especially seasonal demand;
    2. Investing in infrastructure repair and replacement;
    3. Recovering the full costs, including capital and operational, of water systems through water system revenues; and
    4. Establishing operating capital and debt service of sufficient size; and
  2. Provide an optional system for multiyear water rates that are adjustable in accordance with an approved rate plan.

History of Section. P.L. 2009, ch. 288, § 1; P.L. 2009, ch. 341, § 1.

39-15.1-2. Definitions.

For the purposes of this chapter, the following definitions shall apply:

  1. “Agricultural” shall mean commercial agricultural producers as defined in § 46-15.3-4(2) .
  2. “Commission” shall mean the public utilities commission established by chapter 1 of this title, with all powers set forth in chapter 1 of this title, including, but not limited to, the powers set forth in §§ 39-1-3 and 39-1-7 , and in chapter 4 of this title, and subject to the provisions of chapter 5 of this title.
  3. “Division” shall mean the division of public utilities and carriers.
  4. “Water resources board” shall mean the water resources board having the duties set forth in chapter 15 of title 46.
  5. “Water supplier” shall mean all water supply systems regulated by the public utilities commission including the Kent County Water Authority, Newport Water Department, Pawtucket Water Supply Board, Providence Water Supply Board, United Water Rhode Island, Woonsocket Water Department, and any future water supply system that meets the definition established in § 39-1-2(a)(20) pertaining to public utilities employed for the distribution of water to the consuming public.
  6. “Water supply systems management plan” shall mean a water supply systems management plan prepared in accordance with § 46-15.3-5.1 and found by the water resources board, pursuant to the provisions of § 46-15.3-7.6 , to be in compliance with the requirements for such plans.

History of Section. P.L. 2009, ch. 288, § 1; P.L. 2009, ch. 341, § 1.

39-15.1-3. Rates.

  1. Adequacy.  The rates of water suppliers subject to commission rate regulation shall be responsible and adequate to pay for all costs associated with water supply, including, but not limited to, the costs of:
    1. Acquisition, treatment, transmission, distribution, and availability of water;
    2. System administration and overhead, including the prudent cost and/or value of all services and facilities provided by the city or town to the water supplier, including, but not limited to, testing, operation, maintenance, replacement, repair, debt service, and associated with, but not limited to, supply, production, treatment, transmission, administration facilities, and metering and billing;
    3. Programs for the conservation and efficient use of water, including costs of developing, implementing, enforcing, and evaluating the conservation programs and including conservation pricing as described in subsection (d);
    4. Sufficient operating reserves, revenue stabilization funds, debt service reserves, and capital improvement/infrastructure replacement funds to implement water supply system management plans.
  2. Equitability.  Except for service charges and other fixed fees and charges approved as reasonable by the commission, where practicable, rates:
    1. Shall be based on metered usage and fairly set among and within the classes and/or types of users;
    2. Shall provide that within any class of users the full cost of system capacity, administration, operation, and water supply costs for peak and seasonal use is borne by the users that contribute to such peak and seasonal use; and
    3. May provide a basic residential use rate for water use that is designed to make a basic level of water use affordable. Rates may require implementation of demand management practices, consistent with the standards and guidelines of the water resources board, established pursuant to § 46-15.8-5(1) , by wholesale and retail customers.
  3. Revenue stabilization.  Water suppliers subject to commission rate regulation shall in the absence of other sufficient funds available for similar purposes, establish as part of their next general rate filing before the commission a revenue-stabilization account to ensure fiscal stability during periods when revenues decline as a result of implementing water conservation programs, or due to circumstances beyond the reasonable control of the water supplier, including, but not limited to, the weather and drought. A revenue-stabilization account shall accumulate a maximum of ten percent (10%) of the annual operating expenses of the supplier and shall be used to supplement other revenues so that the supplier’s reasonable costs are compensated. A supplier may draw upon its revenue-stabilization account without further action of the commission if revenues in any fiscal year fall below the level sufficient to provide reasonable compensation for services rendered, subject to periodic review by the commission to ensure that the purposes of § 39-15.1-1 are fulfilled.
  4. Conservation.  Water suppliers subject to commission rate regulation shall take effective action to reduce waste of water and to reduce non-agricultural seasonal increases in the use of water, and may adopt conservation pricing as part of a demand management program or otherwise revise their rates as a means to achieve their goals. For the purpose of encouraging conservation of water, suppliers are authorized to request increased rates based on quantity used either throughout the year or seasonally and to seek expedited review by the commission of such revised rates, provided that the supplier shall not have the burden of proof to link the increased rate to obtaining reasonable compensation for the service rendered as established in § 39-3-12 . Conservation pricing shall be designed to promote efficient water use, and to limit seasonal non-agricultural outdoor water use, and to the extent possible shall not increase prices for water users with no significant seasonal increase in water use. Revenues generated from the adoption of conservation rates shall be used to fund the revenue-stabilization account established pursuant to subsection (c) above, operating reserves, debt-service reserves or capital improvement/infrastructure replacement funds.
  5. Billing.  Billing shall be at a minimum quarterly by December 31, 2013.

History of Section. P.L. 2009, ch. 288, § 1; P.L. 2009, ch. 341, § 1.

39-15.1-4. Optional multiyear rate plans.

  1. Water suppliers may, at their discretion, file with the commission a rate plan for a period not to exceed six (6) years, which rate plans shall set forth proposed rates:
    1. That are adequate, as described in § 39-15.1-3(a) , to pay for all reasonable costs of service associated with water supply during the period of the plan, and may include projections of cost increases, and are equitable as described in § 39-15.1-3(b) ;
    2. That attribute the cost of increased seasonal demand to customers who or that contribute to increased seasonal demand and that may include conservation pricing pursuant to § 39-15.1-3(d) ;
    3. That provide for infrastructure maintenance, repair, and replacement, especially in order to meet goals for reduction of leakage and the accounting of non-billed water, that are included in a water supply systems management plan; and
    4. That provide for the establishment and maintenance of operating reserves, capital reserves, and debt-service reserves as described in § 39-15.1-3(a) .
  2. The commission shall approve or reasonably amend the plan and the rates proposed therein.
  3. A water supplier with a multiyear plan approved by the commission may change its rates consistent with provisions of the plan, provided that a forty-five (45) day notice is given to the commission and the division, which notice shall state the amount of the proposed rate changes, the manner in which the proposed rate is consistent with the approved plan, and the purpose of the proposed rate change. The proposed rate change shall be effective sixty (60) days after the notice to the commission and the division, unless the commission shall decide that the proposed rate increase may be unreasonable or inconsistent with the approved plan, in which case the commission shall hold a hearing on the proposed rate increase and may approve, or reasonably amend the proposed rate increase. Notwithstanding the foregoing notice provision, the commission shall be bound by the suspension period set forth in § 39-3-11 .
  4. A water supplier may petition the commission for a modification to an approved plan, and the commission in hearing and deciding the petition need only consider those portions or elements of the plan affected by the proposed modification. The commission shall approve or reasonably modify the proposed modification. An approved modification shall become part of the plan for purposes of subsection (c) of this section.
  5. Each water supplier with an approved plan shall report annually to the commission and the division with regard to performance under the plan, including rates, revenues derived from rates, expenditures necessary to pay for all reasonable costs of service; and the level and status of operating reserves, capital reserves, and debt-service reserves.

History of Section. P.L. 2009, ch. 288, § 1; P.L. 2009, ch. 341, § 1.

Chapter 16 Kent County Water District

39-16-1. Definitions.

As used in this chapter the following definitions shall apply:

  1. “Authority” means the corporation created by § 39-16-3 .
  2. “Board” means the members of the authority.
  3. “Bonds” means the bonds, notes, or other obligations issued by the authority pursuant to this chapter.
  4. “District” means the Kent County water district.
  5. “Property” means any or all of the properties of any water supply and distribution system or part thereof, including plants, works, and instrumentalities, and all properties used or useful in connection therewith, and all parts thereof and all appurtenances thereto, including lands, easements, rights in land and water rights, rights-of-way, contract rights, franchises, approaches, connections, dams, reservoirs, water mains and pipelines, pumping stations and equipment, or any other property incidental to and included in the system or part thereof situated within or without the district.
  6. “Treasurer” means the treasurer of the authority.

History of Section. P.L. 1946, ch. 1740, § 2; G.L. 1956, § 39-16-1 ; P.L. 2020, ch. 79, art. 1, § 9.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

NOTES TO DECISIONS

Applicability of Chapter 15.

The enactment of this chapter and the repeal of inconsistent laws did not prevent the town of East Greenwich from acting under chapter 15 of this title. Opinion to Senate, 90 R.I. 224 , 157 A.2d 113, 1960 R.I. LEXIS 3 (1960).

Effect of Repeal Provisions.

Provisions of P.L. 1946, ch. 1740 repealing certain specific laws and general laws was intended to protect the Kent County Water District and its bondholders against competition where district had contracted to serve, but not to deny the communities affected the means of providing a supply of water where the district was unable to do so. Opinion to Senate, 90 R.I. 224 , 157 A.2d 113, 1960 R.I. LEXIS 3 (1960).

39-16-2. District created.

There is hereby created a district to be known as the Kent County water district, whose boundaries shall be coterminous with the boundaries of Kent County. Notwithstanding any finding by any court to the contrary, the Kent County water district shall be a political subdivision of the state.

History of Section. P.L. 1946, ch. 1740, § 1; G.L. 1956, § 39-16-2 ; P.L. 1990, ch. 16, § 1.

39-16-3. Board created.

A board to be known as the Kent County Water Authority is hereby created. The powers of the public benefit corporation shall be vested in and exercised by a majority of the members of the board then in office.

History of Section. P.L. 1946, ch. 1740, § 1; G.L. 1956, § 39-16-3 ; P.L. 1990, ch. 16, § 1.

39-16-4. Composition of board.

  1. The board shall consist of seven (7) members, one member to be appointed by the town council of East Greenwich and two (2) members by the city council of the city of Warwick, and two (2) members each appointed by the town councils of the towns of Coventry and West Warwick. The successors of members shall be appointed by their respective city and town councils. A majority of the governing body appointing a member may remove the member for willful misconduct.
  2. The members of the board shall appoint a member to serve as chair of the board, and the appointment shall be made at the board’s first meeting after the effective date of this section. The chair appointed shall serve for a seven-year (7) term, at which time the board shall appoint a new chair. If a chair is unable to complete their term, a new chair shall be appointed to serve a seven-year (7) term.
  3. Each member shall serve for a term of seven (7) years, except that all vacancies occurring during a term shall be filled for the unexpired term. A member shall hold office until his or her successor has been duly appointed and has qualified. Each member of the authority shall take an oath to administer the duties of his or her office faithfully and impartially, and the oath shall be filed in the office of the secretary of state.
  4. Four (4) members of the authority shall constitute a quorum and the vote of four (4) members shall be necessary for any action taken by the authority. No vacancy in the membership of the authority shall impair the right of a quorum to exercise all the rights and perform all the duties of the authority.
  5. In the event of a vacancy occurring in the board by reason of the death, resignation, or removal for willful misconduct of a member, the governing body of the town or city that appointed the member shall appoint a new member for the unexpired term.
  6. In the month of January, the board shall make an annual report to the town councils of East Greenwich, West Warwick, and Coventry, and to the city council of Warwick, of its activities for the preceding fiscal year. Each report shall set forth a complete operating and financial statement covering its operations during the year. The authority shall cause an annual audit of the books, records, and accounts of the authority to be made.

History of Section. P.L. 1946, ch. 1740, § 1; G.L. 1956, § 39-16-4 ; P.L. 1981, ch. 410, § 1; P.L. 1990, ch. 16, § 1; P.L. 2017, ch. 283, § 1; P.L. 2017, ch. 297, § 1; P.L. 2018, ch. 346, § 26.

39-16-5. Officers and employees of board.

The chairperson of the board shall be selected by the majority vote of the members of the board. The board shall appoint a secretary and a treasurer, who may or may not be a member of the board, and other employees as may be necessary in its judgment, and fix their compensation. The board may provide, in the fixing of compensation, for a retirement program, commonly known as a pension plan, funded by individual or group insurance or annuity contracts or otherwise, for health and accident insurance, for life insurance, for hospital service commonly known as blue cross, and for physicians’ service for any one or more or all of its employees; and the board is hereby authorized to expend the moneys of the authority for purposes and programs as it may deem advisable. These programs and purposes may be financed in full or in part by the moneys of the authority.

History of Section. P.L. 1946, ch. 1740, § 1; G.L. 1956, § 39-16-5 ; P.L. 1962, ch. 41, § 1.

NOTES TO DECISIONS

Employee Compensation.

Substantial evidence supported a decision by the Rhode Island Public Utilities Commission (PUC) determining that employees of a county water authority (CWA) should pay a portion of their health insurance expenses because most other water utilities in Rhode Island required their employees to contribute toward their health insurance and nothing in R.I. Gen. Laws § 39-16-5 divested the PUC of its statutory authority to determine what rates were just and reasonable; the authority of the CWA to set employees’ compensation pursuant to § 39-16-5 and the authority of the PUC to set utility rates were separate and distinct functions. In re Kent County Water Auth. Change Rate Schedules, 996 A.2d 123, 2010 R.I. LEXIS 86 (2010).

39-16-6. Compensation of members and agents.

Each member of the board shall receive an annual salary not to exceed three thousand dollars ($3,000) per year, and shall be entitled to reimbursement of his or her actual and necessary expenses incurred in the performance of his or her official duties. The salaries, compensation, and expenses of all members, officers, employees, and agents shall be paid solely out of the funds of the authority. No part of the earnings of the authority shall inure to the benefit of any private person.

History of Section. P.L. 1946, ch. 1740, § 1; P.L. 1955, ch. 3592, § 1; G.L. 1956, § 39-16-6 ; P.L. 1969, ch. 22, § 1; P.L. 1990, ch. 16, § 1.

39-16-7. Business prohibited to members.

No member of the authority shall directly or indirectly engage in any contract or agreement for labor or for the supply of materials for construction or reconstruction of the physical assets of the authority or replacements or additions thereto.

History of Section. P.L. 1946, ch. 1740, § 1; P.L. 1955, ch. 3592, § 1; G.L. 1956, § 39-16-7 .

39-16-8. Powers of authority.

The authority shall have power:

  1. To acquire property by voluntary purchase from the owner or owners thereof; and if the authority deems it advisable, to acquire any of the properties through the purchase of stock and obligations of a corporation owning the property and the dissolution of the corporation. The owner or owners of any property that the authority is herein authorized to acquire are hereby authorized to sell or otherwise transfer the same to the authority, and in the case of a sale or other transfer of property pursuant to this provision it shall be lawful to dissolve the corporation, any other provision of law to the contrary notwithstanding.
  2. To own and operate, maintain, repair, improve, enlarge, and extend, in accordance with the provisions of this chapter, any property acquired hereunder all of which, together with the acquisition of the property, are hereby declared to be public purposes.
  3. To produce, distribute, and sell water within or without the territorial limits of the district.
  4. To sue and be sued.
  5. To adopt and alter a corporate seal.
  6. To acquire, hold, use, lease, sell, transfer, and dispose of any property, real, personal, or mixed, or interest therein for its corporate purposes, and to mortgage, pledge, or lease any such property; provided, however, that in the case of any sale or proposed sale of any real property hereunder, the authority shall first grant to the city or town in which the real property, or any part thereof, is situated the right to purchase the real property, or portion thereof situated within its boundaries, upon the same terms and conditions as the authority offers or proposes to offer to any other prospective purchaser.
  7. To make bylaws for the management and regulation of its affairs.
  8. To borrow money for any of its corporate purposes, including the creation and maintenance of working capital, and to issue negotiable bonds, notes, or other obligations, and to fund or refund the same.
  9. To fix rates and collect charges for the use of the facilities of or services rendered by or any commodities furnished by the authority, such as to provide revenues sufficient at all times to pay, as the same shall become due, the principal and interest on the bonds of the authority, together with the maintenance of proper reserves therefor, in addition to paying, as the same shall become due, the expense of operating and maintaining the properties of the authority, together with proper reserves for depreciation, maintenance, and contingencies and all other obligations and indebtedness of the authority. The authority shall charge any city, county, or town for the use of any facility of or service rendered by or any commodities furnished to it by the authority at rates applicable to other users taking similar service.
  10. To contract in its own name for any lawful purpose that would effectuate the provisions of this chapter; to execute all instruments necessary to carry out the purposes of this chapter; and to do all things necessary or convenient to carry out the powers expressly granted by this chapter; provided, however, that the full faith, credit, and taxing power of the state or of any city, county, town, or other political subdivision shall never be pledged, nor shall any bond, note, or other evidence of indebtedness of the authority constitute the obligation of the state or of any city, county, town, or other political subdivision, but shall be solely the obligation of the authority. It is the intention of the legislature that any property acquired by the authority pursuant to the provisions of this chapter shall be financed as a self-liquidating enterprise, and that any indebtedness incurred by the authority shall be payable solely from the earnings or revenues derived from all or part of the property acquired by the authority.
  11. To enter into cooperative agreements with cities, counties, towns, or water companies within or without the district for the interconnection of facilities or for any other lawful corporate purposes necessary or desirable to effect the purposes of this chapter.

History of Section. P.L. 1946, ch. 1740, § 3; G.L. 1956, § 39-16-8 ; P.L. 1971, ch. 63, § 1; P.L. 1990, ch. 16, § 1.

39-16-9. Application of public utility law — Rate determination.

Notwithstanding the proviso contained in the definition of “public utility” in § 39-1-2 , chapters 1 — 5 of this title shall apply to the water district created by this chapter and to the governing body thereof, and notwithstanding anything contained in this chapter with respect to fixing rates and collecting charges, rates and charges of the district and/or authority shall be established in accordance with and subject to the provisions of chapters 1 — 5. Until so established, the rates and charges that were in effect at the time when the authority acquired properties pursuant to the provisions of § 39-16-8 , shall continue in full force and effect.

History of Section. P.L. 1952, ch. 2876, § 1; G.L. 1956, § 39-16-9 .

NOTES TO DECISIONS

Kent County Water Authority.

The Kent county water authority is not a true body politic in the nature of a quasi-municipal corporation exercising a part of the sovereign power of the state such as the legislature intended to exempt from the provisions of chapters 1 to 5 of this title, so the authority must file a schedule of its rates and a copy of its rules and regulations in compliance with those chapters. Kennelly v. Kent County Water Auth., 79 R.I. 376 , 89 A.2d 188, 1952 R.I. LEXIS 58 (1952).

39-16-10. Power to issue bonds — Pledge of revenues.

The authority shall have the power and is hereby authorized from time to time to issue its negotiable bonds for any of its corporate purposes and to secure the payment of the bonds as may be provided in the resolution or resolutions authorizing the bonds. Except as may be otherwise expressly provided by the authority, every issue of bonds by the authority shall be general obligations payable out of any moneys, earnings, or revenues of the authority, subject only to any agreements with the holders of particular bonds pledging any particular moneys, earnings, or revenues.

History of Section. P.L. 1946, ch. 1740, § 4; G.L. 1956, § 39-16-10 .

39-16-11. Terms and sale of bonds — Refunding.

  1. The authority is hereby authorized to provide by resolution for the issuance, at one time or from time to time, of revenue bonds of the authority for the purpose of paying all or part of the cost to acquire, construct, reconstruct, rehabilitate, improve, or maintain any property necessary or desirable for the purposes of the authority. The bonds shall be authorized by resolution of the board, and shall bear such date or dates, mature at such time or times not exceeding forty (40) years from their date, bear interest at such rate or rates payable at such time or times, be in such denominations, be in such form, either coupon or registered, carry such registration privileges and such privileges of reconversion from registered to coupon form, be executed in such manner, be payable in such medium of payment, at such place or places and be subject to redemption at such premium, if required, and on such terms, as the resolution may provide. Notwithstanding the requirement of § 39-16-8 that any indebtedness incurred by the authority shall be payable solely from the earnings or revenues derived from all or part of the property acquired by the authority, the authority may purchase, or otherwise acquire, or require bond insurance, letters of credit, lines of credit, or such other instruments or securities to ensure the timely payment of principal, interest, and/or redemption premium on the bonds.
  2. Pending the preparation of the bonds in definitive form, the board shall have the power to issue temporary bonds or interim receipts in such form as the board may elect. The definitive bonds shall be signed by the chairperson of the authority or a facsimile thereof shall be impressed or imprinted thereon and attested by the manual or facsimile signature of the secretary of the authority, and any coupons attached to the bonds shall bear the facsimile signature of the chairperson of the authority. In case any officer whose signature or facsimile of whose signature shall appear on any bonds or coupons shall cease to be an officer before the delivery of the bonds, the signature or the facsimile shall nevertheless be valid and sufficient for all purposes the same as if he or she had remained in office until delivery.
  3. Any bonds, authorized by and issued pursuant to this chapter, may be sold at public or private sale for such price or prices as the authority shall determine.
  4. The authority is hereby authorized to provide for the issuance of refunding bonds of the authority for the purpose of refunding any bonds then outstanding that shall have been issued under the provisions of this chapter, including the payment of any redemption premium thereon or interest accrued or to accrue to the earliest or subsequent date of redemption purchase or maturity of the bonds and, if deemed advisable by the authority, for the additional purpose of paying all or part of the cost of acquiring, constructing, reconstructing, rehabilitating, or improving any property of the authority. The proceeds of bonds or notes issued for the purpose of refunding outstanding bonds or notes may be applied, in the discretion of the authority, to the purchase, retirement at maturity, or redemption of the outstanding bonds or notes, either on their earliest or a subsequent redemption date, and may, pending that application, be placed in escrow. Any escrowed proceeds may be invested and reinvested in obligations of or guaranteed by the United States, or in certificates of deposit, time deposits, or repurchase agreements fully secured or guaranteed by the state or the United States, or an instrumentality of either, maturing at such time or times as shall be appropriate to ensure the prompt payment, as to principal, interest, and redemption premium, if any, of the outstanding bonds or notes to be so refunded. After the terms of the escrow have been fully satisfied and carried out, any balance of the proceeds and interest, income, and profits, if any, earned or realized on the investments thereof, may be returned to the authority for use by it in furtherance of its purposes. The portion of the proceeds of bonds or notes issued for the additional purpose of paying all or part of the cost of acquiring, constructing, reconstructing, rehabilitating, developing, or improving any property of the authority may be invested and reinvested in such obligations, securities, and other investments consistent with this section as shall be specified in the resolutions under which the bonds are authorized and that shall mature not later than the times when the proceeds will be needed for these purposes. The interest, income, and profits, if any, earned or realized on the investments may be applied to the payment of all parts of the costs, or may be used by the authority otherwise in furtherance of its purposes. The issuance of the bonds, the maturities, and other details thereof, the rights of the holders thereof, and the rights, duties, and obligations of the authority in respect to the bonds shall be governed by the provisions of this chapter insofar as the provisions may be applicable.

History of Section. P.L. 1946, ch. 1740, § 4; G.L. 1956, § 39-16-11 ; P.L. 1981, ch. 410, § 1; P.L. 1990, ch. 16, § 1; P.L. 1997, ch. 326, § 118.

39-16-12. Covenants permissible in bond resolution.

Any resolution or resolutions authorizing any bonds or any issue of bonds may contain provisions that shall be a part of the contract with the holders of the bonds thereby authorized, as to:

  1. Pledging all or any part of the money, earnings, income, and revenues derived from all or any part of the property of the authority to secure the payment of any bonds or of any issue of bonds subject to such agreements with bondholders as may then exist;
  2. The rates to be fixed and the charges to be collected and the amounts to be raised in each year, and the use and disposition of the earnings and other revenues;
  3. The setting aside of reserves and the creation of sinking funds and the regulation and disposition thereof;
  4. Limitations on the right of the authority to restrict and regulate the use of the properties in connection with which the bonds are issued;
  5. Limitations on the purposes to which the proceeds of sale of any issue of bonds may be applied;
  6. Limitations on the issuance of additional bonds, including refunding bonds and the terms upon which additional bonds may be issued and secured;
  7. The procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent thereto, and the manner in which consent may be given;
  8. The creation of special funds into which any earnings or revenues of the authority may be deposited, and the investment of the funds;
  9. The appointment of a fiscal agent and the determination of its powers and duties;
  10. Limitations on the power of the authority to sell or otherwise dispose of its properties;
  11. The preparation of annual budgets by the authority and the employment of consulting engineers and auditors;
  12. The rights and remedies of bondholders in the event of failure on the part of the authority to perform any agreement;
  13. Covenanting that as long as any bonds are outstanding the authority shall use its best efforts to establish and maintain its rates and charges adequate at all times to pay and provide for all operating expenses of the authority, all payments of principal, redemption premium, if any, and interest on bonds, notes, or other evidences of indebtedness of or assumed by the authority, all renewals, repairs, or replacements to the property of the authority deemed necessary, and all other amounts that the authority may by law, resolution, or contract be obligated to pay. On or before the last day of the authority’s fiscal year, the authority shall review the adequacy of its rates and charges to satisfy the above requirements for the next succeeding fiscal year. If the review indicates that the rates and charges are, or are likely to be, insufficient to meet the requirements of this chapter, the authority shall promptly take such steps as are permitted by law and as are necessary to cure or avoid the deficiency, including but limited to, making an emergency request to the public utilities commission to raise its rates and charges;
  14. Any other matters, of like or different character that in any way affect the security or protection of the bonds.

History of Section. P.L. 1946, ch. 1740, § 4; G.L. 1956, § 39-16-12 ; P.L. 1990, ch. 16, § 1.

39-16-13. Tax exemption.

It is hereby declared that the authority and the carrying out of its corporate purposes is in all respects for the benefit of the people of the state and for the improvement of their health, welfare, and prosperity, and the authority will be performing an essential governmental function in the exercise of the powers conferred by this chapter, and the state covenants with the holders of the bonds that the authority shall be required to pay no taxes or assessments or sums in lieu of taxes, except as provided in § 39-16-14 , to the state or any political subdivision thereof upon any of the property acquired by it or under its jurisdiction, control, possession, or supervision or upon its activities in the operation and maintenance of the property or upon any earnings, revenues, moneys, or other income derived by the authority, and that the bonds of the authority and the income therefrom shall at all times be exempt from taxation.

History of Section. P.L. 1946, ch. 1740, § 5; G.L. 1956, § 39-16-13 ; P.L. 1997, ch. 326, § 118.

NOTES TO DECISIONS

Obligation to Pay Fees.

Where annual approval fees constituted a lawful licensing measure, and not a tax, an organization could not rely upon its tax-exempt status to avoid its obligation to pay those fees. Kent County Water Auth. v. State (Department of Health), 723 A.2d 1132, 1999 R.I. LEXIS 48 (1999).

39-16-14. Payments in lieu of taxes.

The authority shall pay annually, having first made provision for the payment of principal and interest on any bonds outstanding and any other charges payable from revenues due in such year as may be provided in the resolution or resolutions authorizing any bonds, in lieu of any property tax, as a charge upon its earnings or revenues, to each city, town, or district, a sum equal in amount to any property tax levied on any property by or on behalf of the city, town, or district during the year next preceding the acquisition of such property by the authority. The authority shall have no power to levy or collect ad valorem property taxes.

History of Section. P.L. 1946, ch. 1740, § 5; G.L. 1956, § 39-16-14 .

39-16-15. Pledge not to alter rights of authority.

The state does hereby pledge to and agree with the holders of the bonds, notes, and other evidences of indebtedness of the authority that the state will not limit or alter rights hereby vested in the authority until the bonds, notes, or other evidences of indebtedness, together with interest thereon, with interest on any unpaid installment of interest and all costs and expenses in connection with any actions or proceedings by or on behalf of the bondholders, are fully met and discharged.

History of Section. P.L. 1946, ch. 1740, § 6; G.L. 1956, § 39-16-15 .

39-16-16. Bonds as legal investments.

The bonds are hereby made securities in which all public officers and bodies of this state and all municipalities and municipal subdivisions; all insurance companies and associations and other persons carrying on an insurance business; all banks, bankers, trust companies, savings banks, and savings associations, including savings and loan associations, building and loan associations, investment companies and other persons carrying on a banking business; all administrators, guardians, executors, trustees, and other fiduciaries; and all other persons, whomsoever, who are now or may hereafter be authorized to invest in bonds or other obligations of the state, may properly and legally invest funds including capital in their control or belonging to them. The bonds are also hereby made securities that may be deposited with and shall be received by all public officers and bodies of this state, and all municipalities and municipal subdivisions, for any purpose for which the deposit of bonds or other obligations of this state is now or may hereafter be authorized.

History of Section. P.L. 1946, ch. 1740, § 8; G.L. 1956, § 39-16-16 .

39-16-17. Money of authority.

All money of the authority, from whatever source derived, shall be paid to the treasurer of the authority. The money on receipt shall be deposited forthwith in a separate bank account or accounts. The money in the accounts shall be paid out on check of the treasurer, on requisition by the authority, or of such other person or persons as the authority may authorize to make the requisitions. All deposits of money shall be secured by obligations of the United States, or of the state, of a market value equal at all times to the amount of deposits, and all banks and trust companies are authorized to give security for the deposits. The authority shall have power, notwithstanding the provisions of this section, to contract with the holders of any of its bonds as to the custody, collection, security, investment, and payment of any money of the authority, or any money held in trust or otherwise for the payment of bonds or in any way to secure bonds, and to carry out any contract notwithstanding that the contract may be inconsistent with the previous provisions of this section. Money held in trust or otherwise for the payment of bonds or in any way to secure bonds and deposits of money may be secured in the same manner as money of the authority, and all banks and trust companies are authorized to give security for the deposits.

History of Section. P.L. 1946, ch. 1740, § 7; G.L. 1956, § 39-16-17 .

39-16-18. Right to alter, amend, or repeal chapter.

The right to alter, amend, or repeal this chapter is hereby expressly reserved, but no such alteration, amendment, or repeal shall operate to impair the obligation of any contract made by the authority under any power conferred by this chapter.

History of Section. P.L. 1946, ch. 1740, § 9; G.L. 1956, § 39-16-18 .

39-16-19. Severability.

If any section, clause, provision, or term of this chapter shall be declared unconstitutional and ineffective in whole or in part, then to the extent that it is not unconstitutional and ineffective it shall be valid and effective and no other section, clause, provision, or term shall on account thereof be deemed invalid or ineffective.

History of Section. P.L. 1946, ch. 1740, § 10; G.L. 1956, § 39-16-19 .

39-16-20. Supplementary powers.

The authority, in addition to any other powers granted in this chapter, has the following powers in order to assist it in setting rates:

  1. To conduct examinations and hearings and to hear testimony and take proof, under oath or affirmation, at public or private hearings, on any matter material for its information and necessary to carry out the terms of this chapter;
  2. To issue subpoenas, necessary to carry out the terms of this chapter, requiring the attendance of witnesses and the production of books and papers pertinent to any hearing before the authority, or before one or more of the members of the authority appointed by it to conduct the hearing; and
  3. To apply to any court, having territorial jurisdiction of the offense, to have punished for contempt any witness who refuses to obey a subpoena, or who refuses to be sworn or affirmed to testify, or who is guilty of any contempt after summons to appear.

History of Section. P.L. 1990, ch. 16, § 2.

39-16-21. Transfer on dissolution.

If the authority shall be dissolved, all funds of the authority, not required for the payment of bonds or other debts of the authority, the disposition of which is not otherwise governed by contracts to which the authority may be party, shall be paid to the towns of East Greenwich, Coventry, and West Warwick and the city of Warwick and, except as provided in this chapter, all property belonging to the authority shall be vested in the above-mentioned municipalities and delivered to them.

History of Section. P.L. 1990, ch. 16, § 2; P.L. 1997, ch. 326, § 118.

39-16-22. Notes.

The authority may, by resolution, authorize the issue from time to time of interest bearing or discounted notes in anticipation of the issue of bonds. Temporary notes issued under this section shall be signed by the chairperson and the treasurer of the authority and shall be payable within five (5) years of their respective dates, but the principal of and interest on notes issued for a shorter period may be renewed or paid from time to time by the issue of other notes under this section, provided the period from the date of the original note to the maturity of any note issued to renew or pay the same debt or the interest thereon shall not exceed five (5) years. All other terms and conditions of the notes shall be set by the authority in the resolution authorizing issuance.

History of Section. P.L. 1990, ch. 16, § 2; P.L. 1997, ch. 326, § 118.

Chapter 17 Franchises

39-17-1. Power of town or city to grant franchises.

Any town or city, by vote of the town council or city council, may pass ordinances or make contracts to be executed by its proper officers, granting rights and franchises in, over, or under the streets and highways in the town or city to the corporations, as are provided for in § 39-17-2 , and for the purposes and upon the condition specified in this chapter.

History of Section. G.L. 1896, ch. 77, § 1; G.L. 1909, ch. 91, § 1; G.L. 1923, ch. 103, § 1; G.L. 1938, ch. 126, § 1; G.L. 1956, § 39-17-1 ; P.L. 1997, ch. 326, § 119.

Cross References.

Grant of right to lay water pipes, § 39-15-11 .

Comparative Legislation.

Grant of franchise:

Mass. Ann. Laws ch. 40, § 4; ch. 43, § 20.

Collateral References.

Carrier’s certificate of convenience and necessity, franchise, or permits as subject to transfer or encumbrance. 15 A.L.R.2d 883.

Liability of municipality in damages for its refusal to grant permit, license or franchise. 37 A.L.R.2d 694.

39-17-2. Purposes for which permitted — Duration — Protection of existing businesses — Landowner’s rights.

Any grants, whether by ordinance or by contract, may confer upon any corporation created by the general assembly for the purpose of distributing water, or for the purpose of producing, selling, and distributing currents of electricity to be used for light, heat, or motive power, or for the purpose of manufacturing, selling, and distributing illuminating or heating gas, or for the purpose of operating street railways by any motive power, or for the purpose of operating telephones, the exclusive right, for a time not exceeding twenty-five (25) years, to erect, lay, construct, and maintain for the purposes for which the corporation is created, poles, wires, pipes, conduits, rails, or cables, with necessary and convenient appurtenances as may be required for the conduct of the business of the corporation, in, over, or under the streets of the town or city; provided, however, that no grant of exclusive rights or franchises for any of the purposes described in this section shall be made by any city or town where, at the time a corporation created for the same purpose, or a person duly authorized by law to use the streets for such purpose, shall be in actual use and enjoyment of the rights, except to the corporation or person already carrying on business in the city or town; and provided, further, that whenever in any city or town more than one corporation shall at the time be in actual use and enjoyment of portions of the streets and highways for any of the purposes described in this section, no exclusive right or franchise shall be granted to either without the consent of the other; and provided, further, that no grant shall prevent any town or city from permitting any person or corporation to use streets or highways for any of the purposes described in this section in order to connect and serve any two (2) or more estates owned by the person or corporation.

History of Section. G.L. 1896, ch. 77, § 2; G.L. 1909, ch. 91, § 2; G.L. 1923, ch. 103, § 2; G.L. 1938, ch. 126, § 2; G.L. 1956, § 39-17-2 ; P.L. 1997, ch. 326, § 119; P.L. 2006, ch. 216, § 15.

Cross References.

Notice of bill in general assembly to create corporation with power to acquire franchises, § 22-9-2 .

Collateral References.

Right of public utility to discontinue line or branch on ground that it is unprofitable, where by statute, ordinance, or franchise it is obligated to continue service in its entirety. 10 A.L.R.2d 1134.

39-17-3. Franchise tax payable to city or town.

Every corporation that shall accept exclusive rights or franchises granted by ordinance or contract under the provisions of this chapter, shall make and render to the treasurer of the town or city granting the same, on or before the thirtieth day of January, April, July, and October in every year, returns, verified by the oath of its president or treasurer, of the gross earnings of the corporation within the town or city for the period of three (3) months next preceding the first day of January, April, July, and October in the same year, and shall at the time pay to the town or city treasurer, in full payment for the rights and franchises granted under this chapter, a special tax upon the gross earnings at a rate not exceeding three percent (3%) upon the gross earnings of the corporation within the town or city in that year.

History of Section. G.L. 1896, ch. 77, § 3; G.L. 1909, ch. 91, § 3; G.L. 1923, ch. 103, § 3; G.L. 1938, ch. 126, § 3; G.L. 1956, § 39-17-3 ; P.L. 1997, ch. 326, § 119.

NOTES TO DECISIONS

Applicability.

If a public utility has accepted an exclusive franchise it comes under the provisions of this section unless exempted under other provisions. Opinion to House of Representatives, 81 R.I. 442 , 104 A.2d 250, 1954 R.I. LEXIS 108 (1954).

Collateral References.

Tax on franchise as a property or an excise tax. 103 A.L.R. 61.

Voluntary character of payment of tax or assessment made to secure, or to avoid loss of, franchise. 64 A.L.R. 123; 84 A.L.R. 294.

39-17-4. Apportionment of gross earnings among cities and towns.

In case any corporation shall do business in more than one town or city, and it shall be unable to ascertain the amount of its gross earnings in each town or city separately from actual accounts kept thereof, its returns of gross earnings to be made as provided in § 39-17-3 shall state the gross earnings of its entire business and the length of its wires, pipes, mains, or tracks in the streets and highways of each town or city, and the gross earnings from its business in the town or city shall be taken to be that proportion of the whole gross earnings that the length of its wires, pipes, mains, or tracks in the streets and highways of the city or town bears to the total length of all its wires, pipes, mains, or tracks in streets and highways.

History of Section. G.L. 1896, ch. 77, § 3; G.L. 1909, ch. 91, § 3; G.L. 1923, ch. 103, § 3; G.L. 1938, ch. 126, § 3; G.L. 1956, § 39-17-4 ; P.L. 1997, ch. 326, § 119.

39-17-5. Delinquencies in franchise tax.

In case any corporation shall neglect to make payment of the quarterly tax as provided in § 39-17-3 , the town or city treasurer may collect and recover of the corporation, as other taxes are collectible, double the amount of the special tax shown to be due by the last preceding quarterly return of the corporation.

History of Section. G.L. 1896, ch. 77, § 3; G.L. 1909, ch. 91, § 3; G.L. 1923, ch. 103, § 3; G.L. 1938, ch. 126, § 3; G.L. 1956, § 39-17-5 ; P.L. 1997, ch. 326, § 119.

39-17-6. Rate increases during term of franchise.

No corporation which shall acquire exclusive rights or franchises under the provisions of this chapter, shall at any time during the continuance thereof charge for its product, wares, or service, to any town or city or the inhabitants thereof, any greater price than the price actually charged by it at the time of the granting of the rights or franchises, both prices being reckoned in United States gold coin of the standard weight and fineness in force at the time of the granting of the right or franchise, or in the equivalent thereof in actual value in other lawful money of the United States.

History of Section. G.L. 1896, ch. 77, § 4; G.L. 1909, ch. 91, § 4; G.L. 1923, ch. 103, § 4; G.L. 1938, ch. 126, § 4; G.L. 1956, § 39-17-6 .

NOTES TO DECISIONS

Second Fare for Transfer.

Street railway company could not charge a second five cent fare on connecting line to which passenger had to transfer in order to travel from one point to another on its lines, where it had contracted with town to charge no more than five cents from one point to any other point, such contract being a waiver of right to charge higher fare under the charter of a predecessor corporation. Adams v. Union R. Co., 21 R.I. 134 , 42 A. 515, 1899 R.I. LEXIS 9 (1899).

Stipulation for Lesser Fare.

Contract by town made under authority of this act in which fare of street railway company was fixed at a rate lower than that charged at time contract was made was not ultra vires, as this section implies that the town may stipulate for a lesser fare. Adams v. Union R. Co., 21 R.I. 134 , 42 A. 515, 1899 R.I. LEXIS 9 (1899).

39-17-7. Town regulatory powers — Appeal.

The use and enjoyment of all rights and franchises granted under the provisions of this chapter shall be subject to such reasonable rules and regulations and orders, controlling the extent and quality of construction and service to be maintained by the corporation to which such rights are granted, and prescribing the location and arrangement of its tracks, poles, wires, or conduits, and their appurtenances, as are, or may be from time to time, enacted by the town or city councils. In case any regulation or enactment shall seem to any corporation to be unreasonable, the corporation, within thirty (30) days after the same has been passed, may complain to the division of public utilities and carriers setting forth that the regulation or order is not reasonable in the premises; and thereupon the division shall proceed to hear and determine the matter in accordance with the provisions of chapter 4 of this title; subject, however, to the right of appeal to the superior court contained in chapter 5 of this title.

History of Section. G.L. 1896, ch. 77, § 5; C.P.A. 1905, § 1107; G.L. 1909, ch. 91, § 5; P.L. 1912, ch. 795, § 52; G.L. 1923, ch. 103, § 5; G.L. 1938, ch. 126, § 5; G.L. 1956, § 39-17-7 .

Cross References.

Appeal from decision of administrative agency, § 42-35-15 et seq. and chapter 5 of this title.

Franchises subject to regulation by division of public utilities, § 39-3-35 .

NOTES TO DECISIONS

Contract for Benefit of Public.

An individual passenger could claim benefit of provision of contract between street railway company and town fixing maximum fare, as such contract was made for the benefit of the public using the company’s lines as passengers. Adams v. Union R. Co., 21 R.I. 134 , 42 A. 515, 1899 R.I. LEXIS 9 (1899).

Order by City Unreasonable.

Order of city council to street railway company to construct a line through narrow streets, over narrow bridge, and near existing tracks, was unreasonable. Woonsocket S. Ry. v. Woonsocket, 22 R.I. 64 , 46 A. 272, 1900 R.I. LEXIS 55 (1900).

39-17-8. Charges for use of streets.

No city or town shall make any charge to any corporation for the use of its streets except under and in accordance with the provisions of this chapter; provided, that any city or town may require that any street railway company shall continue to conform to any existing requirements as to paving and keeping in repair the streets and highways.

History of Section. G.L. 1896, ch. 77, § 6; G.L. 1909, ch. 91, § 6; G.L. 1923, ch. 103, § 6; G.L. 1938, ch. 126, § 6; G.L. 1956, § 39-17-8 .

Chapter 18 Rhode Island Public Transit Authority

39-18-1. Definitions.

As used in this chapter, the following words and terms shall have the following meanings unless the context shall indicate another or different meaning:

  1. “Authority” means the Rhode Island public transit authority created by § 39-18-2 , or, if the authority shall be abolished, the board, body, or commission succeeding to the principal functions thereof, or upon whom the powers of the authority given by this chapter shall be given by law.
  2. “Bonds” means bonds, notes, or other evidences of indebtedness, including temporary notes of the authority issued in anticipation of revenues to be received by the authority or in anticipation of the receipt of federal, state, or local grants or other aid.
  3. “Municipality” means any town, city, or subdivision thereof.
  4. “Transit property” means and includes any property, whether real or personal, and any apparatus and equipment used or useful in the operation of a motor bus, water, or rail passenger transportation line or system, and includes any rights or franchises to operate any passenger transportation line or system, but it does not include other property or assets.

History of Section. P.L. 1964, ch. 210, § 1; P.L. 1965, ch. 127, § 1; P.L. 1983, ch. 157, § 1; P.L. 1999, ch. 256, § 1.

Cross References.

Rhode Island public rail corporation, § 42-64.2-1 et seq.

Comparative Legislation.

Public transportation authority:

Mass. Ann. Laws ch. 161A, § 1 et seq.

39-18-1.1. Findings.

It is hereby found and declared as follows:

  1. Rhode Island has had a long and rich legacy of providing public transit services that contribute to the fabric of the state;
  2. Public transit continues to evolve and can play increasingly important roles in the future;
  3. Public transit services provide benefits to the quality of communities by curtailing energy consumption, helping people participate in their communities by offering mobility options, defining spaces and promoting sound urban design, and linking activity centers to support social networks;
  4. Pedestrian access and safety is crucial to supporting public transit services;
  5. One of the values of an improved public transit system is the generation of investment and wealth in areas served by the system;
  6. The state’s public transit system should provide a variety of mobility options for people that include services for people with special needs, and services to tourism destinations, employment and retail centers, education institutions and other modes of transportation including rail, air, and water transportation services;
  7. The use of technology is vital for making informed decisions about existing and future public transit services and for providing efficient, user responsive public transit; and
  8. The state in partnership with local communities should support the legacy of public transit services in Rhode Island and improve, expand, and augment that system to meet the needs of the people in the twenty-first (21st) century.

History of Section. P.L. 2007, ch. 504, § 2; P.L. 2007, ch. 518, § 2.

39-18-2. Authority created — Composition — Terms — Oath — Officers — Quorum — Compensation — Conflicts of interest.

  1. There is hereby created a body corporate and politic to be known as the “Rhode Island public transit authority” (hereinafter “RIPTA”).
  2. The authority shall consist of eight (8) members, one of whom shall be the director of the department of transportation, or his or her designee, who shall serve as an ex officio member, and seven (7) of whom shall be appointed by the governor with the advice and consent of the senate, with at least one of the seven (7) being a regular user of fixed-route RIPTA transportation and at least one of the seven (7) being a person with a disability. The governor shall achieve a diverse membership in the board and shall give due consideration to recommendations for nominations from the RIPTA Riders Alliance, the National Federation of the Blind of Rhode Island, the Gray Panthers of Rhode Island, the Sierra Club of Rhode Island, the Rhode Island AFL-CIO, the RIPTA Transportation Advisory Committee, the Rhode Island business community, and the Rhode Island League of Cities and Towns. No one shall be eligible for appointment unless he or she is a resident of this state.
  3. Those members of the authority as of the effective date of this act [June 16, 2006] who were appointed to the authority by members of the board of the general assembly shall cease to be members of the authority on the effective date of this act [June 16, 2006], and the governor shall thereupon nominate two (2) members, each of whom shall serve the balance of the unexpired term of his or her predecessor. Those members of the authority as of the effective date of this act [June 16, 2006] who were appointed to the authority by the governor shall continue to serve the balance of their current terms. Thereafter, during the month of January in each year, the governor shall appoint members to succeed the departing members. The newly appointed members shall serve for a term of three (3) years, commencing on the day they are qualified. In the event of a vacancy occurring in the membership, the governor, with the advice and consent of the senate, shall appoint a member for the unexpired term. Any member of the authority shall be eligible for reappointment.
  4. Each member of the authority, before entering upon his or her duties, shall take an oath to administer the duties of his or her office faithfully and impartially, and the oath shall be filed in the office of the secretary of state.
  5. The authority shall elect one of its members as chairperson, and shall also elect a secretary and such other officers as it deems necessary.
  6. Four (4) members of the authority shall constitute a quorum. The affirmative vote of a majority of the members present and voting shall be necessary for any action taken by the authority. No vacancy in the membership of the authority shall impair the right of a quorum to exercise all the rights and perform all the duties of the authority.
  7. The members of the authority shall receive no compensation, but shall be reimbursed for their actual expenses necessarily incurred in the performance of their duties.
  8. No member of the authority shall be in the employ of, or own any stock in, or be in any way directly or indirectly pecuniarily interested in any railroad corporation, bus, or street railway company; nor shall any member of the authority personally, or through a partner or agent, render any professional service or make or perform any business contract with or for any company; nor shall any member of the authority, directly or indirectly, receive a commission, bonus, discount, present, or reward from any company.
  9. Members of the authority shall be removable by the governor pursuant to the provisions of § 36-1-7 and for cause only, and removal solely for partisan or personal reasons unrelated to capacity or fitness for the office shall be unlawful.
  10. The authority shall conduct a training course for newly appointed and qualified members within six (6) months of their qualification or designation. The course shall be developed by the general manager of the authority, be approved by the authority, and be conducted by the general manager of the authority. The authority may approve the use of any authority and/or staff members and/or individuals to assist with training. The training course shall include instruction in the following areas: the provisions of chapter 46 of title 42, chapter 14 of title 36, and chapter 2 of title 38; and the authority’s rules and regulations. The director of the department of administration shall be responsible for the enforcement of the provisions of this subsection.

History of Section. P.L. 1964, ch. 210, § 1; P.L. 1970, ch. 111, § 5; P.L. 1979, ch. 257, § 1; P.L. 1999, ch. 105, § 12; P.L. 2001, ch. 180, § 81; P.L. 2006, ch. 103, § 5; P.L. 2006, ch. 144, § 5; P.L. 2016, ch. 73, § 1; P.L. 2016, ch. 75, § 1.

Cross References.

Liberal construction, § 42-13-4 .

Severability, § 42-13-5 .

Law Reviews.

For article, “Appointments by the Legislature Under the Rhode Island Separation of Powers Doctrine: The Hazards of a Road Less Traveled,” see 1 R.W.U.L. Rev. 1 (1996).

39-18-3. Purposes of the authority.

  1. It shall be the purposes of the authority to:
    1. Provide public transit services that meet mobility needs of the people of the state, including the elderly and disabled;
    2. Increase access to employment opportunities;
    3. Connect different modes of public transportation, including rail, air, and water services;
    4. Promote community design that features public transit services as defining elements of a community;
    5. Facilitate energy conservation and efficient energy use in the transportation sector by providing public transit services; and
    6. Mitigate traffic congestion and enhance air quality.
  2. It shall further be the purpose of the authority to own and operate a mass motor bus, water, or rail passenger transportation system and to manage, to coordinate, and to perform vehicle maintenance for a state paratransit system. Whenever any operator of a mass motor bus, water, or rail passenger transportation system files with the public utilities administrator a petition to discontinue any service, it is the purpose and function of the authority to determine if it is in the public interest to discontinue that service. If it is determined that it is not in the public interest to discontinue that service, the authority is authorized and empowered to acquire all or any part of the transit property, or any interest therein, of the system.

History of Section. P.L. 1964, ch. 210, § 1; P.L. 1965, ch. 127, § 2; P.L. 1983, ch. 157, § 1; P.L. 1999, ch. 256, § 1; P.L. 2007, ch. 504, § 1; P.L. 2007, ch. 518, § 1.

39-18-4. Powers and duties of the authority.

  1. The authority is hereby authorized and empowered:
    1. To adopt bylaws for the regulation of its affairs and the conduct of its business;
    2. To adopt an official seal and alter the seal at pleasure;
    3. To maintain an office at such place or places within the state as it may designate;
    4. To sue and be sued in its own name, plead, and be impleaded; provided, however, that any and all actions against the authority shall be brought only in the county in which the principal office of the authority shall be located;
    5. To acquire, purchase, hold, use, and dispose of any property, real, personal, or mixed, tangible or intangible, or any interest therein, necessary or desirable for carrying out the purposes of the authority, and to lease as lessee or lessor any property, real, personal, or mixed, or any interest therein, for such term and at such rental as the authority may deem fair and reasonable, and to sell, transfer, convey, mortgage, or give a security interest in any property, real, personal, or mixed, tangible or intangible, or any interest therein, at any time acquired by the authority;
    6. To employ, in its discretion, planning, architectural, and engineering consultants, attorneys, accountants, construction, financial, transportation, and traffic experts and consultants, superintendents, managers, and such other officers, employees, and agents as may be necessary in its judgment, and to fix their compensation;
      1. To fix, from time to time, subject to the provisions of this chapter, schedules and such rates of fare and charges for service furnished or operated as in its judgment are best adopted to ensure sufficient income to meet the cost of service; provided, however, the authority is not empowered to operate a passenger vehicle under its control in competition with passenger vehicles of a private carrier over routes that the private carrier operates pursuant to a certificate of public convenience and necessity issued to the private carrier by the division of public utilities and carriers; and provided further that the authority shall not require any person who meets the means-test criteria as defined by the Rhode Island office of healthy aging and who is either sixty-five (65) years of age, or over, or who is a person with a disability to pay more than one-half (1/2) of any fare for bus rides; provided, however, that under no circumstances shall fares or charges for special service routes be discounted. Any person who is either sixty-five (65) years of age, or over, or who is a person with a disability, who does not satisfy the means-test criteria as heretofore provided, shall only be required to pay one-half (1/2) of the fare or charge for bus rides during off-peak hours, but shall not be eligible for a reduction during peak hours. For the purposes of this chapter, “peak hours,” “off-peak hours,” and “special service routes” shall be determined annually by the authority. The authority, in conjunction with the department of human services, shall establish an advisory committee comprised of seniors/persons with disabilities who are constituent users of the authority’s services to assist in the implementation of this section;
      2. Any person who accompanies and is assisting a person with a disability when the person with a disability uses a wheelchair shall be eligible for the same price exemptions extended to a person with a disability by subsection (a)(7)(i). The cost to the authority for providing the service to the elderly shall be paid by the state;
      3. Any person who accompanies and is assisting a passenger who is blind or visually impaired shall be eligible for the same price exemptions extended to the passenger who is blind or visually impaired by subsection (a)(7)(i). The cost to the authority for providing the service to the elderly shall be paid by the state;
      4. The authority shall be authorized and empowered to charge a fare for any paratransit services required by the Americans with Disabilities Act, 42 U.S.C. § 12101 et seq., in accordance with 49 C.F.R. Part 37;
    7. To borrow money and to issue bonds of the authority for any of its purposes including, without limitation, the borrowing of money in anticipation of the issuance of bonds or the receipt of any operating revenues or other funds or property to be received by the authority, and the financing of property to be owned by others and used, in whole or substantial part, by the authority for any of its purposes, all as may, from time to time, be authorized by resolution of the authority; the bonds to contain on their face a statement to the effect that neither the state nor any municipality or other political subdivision of the state shall be obligated to pay the same or the interest thereon;
    8. To enter into management contracts for the operation, management, and supervision of any or all transit properties under the jurisdiction of the authority, and to make and enter into all contracts and agreements necessary or incidental to the performance of its duties and the execution of its powers under this chapter;
    9. Without limitation of the foregoing, to borrow money from, to receive and accept grants for or in aid of the purchase, leasing, improving, equipping, furnishing, maintaining, repairing, constructing, and operating of transit property, and to enter into contracts, leases, or other transactions with any federal agency; and to receive and accept from the state, from any municipality, or other political subdivision thereof, and from any other source, aid or contributions of either money, property, labor, or other things of value, to be held, used, and applied only for the purposes for which the grants and contributions may be made;
    10. To acquire in the name of the authority, by negotiated purchase or otherwise, on such terms and conditions and in such manner as it may deem proper, or by the exercise of the power of condemnation to the extent only and in the manner as provided in this chapter, public and private lands, including public parks, playgrounds or reservations, or parts thereof, or rights therein, rights-of-way, property rights, easements, and interests as it may deem necessary for carrying out the provisions of this chapter; provided, however, that all public property damaged in carrying out the powers granted by this chapter shall be restored or repaired and placed in its original condition as nearly as practicable;
    11. To contract with any municipality, public or private company or organization, whereby the authority will receive a subsidy to avoid discontinuance of service, and each municipality within the state is hereby authorized to make and enter into such contracts and to make, grant, or give to the authority a subsidy in such amount and for such period of time as it may deem advisable;
    12. To operate open-door service from Rhode Island to and from locations in Massachusetts and Connecticut that are within five (5) miles of the Rhode Island border; and
    13. To do all things necessary, convenient, or desirable to carry out the purposes of this chapter.
  2. To effectuate the purposes of this chapter the authority shall have the following duties:
    1. To participate in and contribute to transportation planning initiatives that are relevant to the purposes of the authority;
    2. To plan, coordinate, develop, operate, maintain, and manage a statewide public transit system consistent with the purposes of the authority, including plans to meet demands for public transit where such demand, current or prospective, exceeds supply and/or availability of public transit services;
    3. To work with departments, agencies, authorities, and corporations of federal, state, and local government, public and private institutions, businesses, nonprofit organizations, users of the system, and other entities and persons to coordinate public transit services and provide a seamless network of mobility options.

History of Section. P.L. 1972, ch. 33, § 1; P.L. 1973, ch. 228, § 1; P.L. 1975, ch. 264, § 1; P.L. 1976, ch. 228, § 1; P.L. 1978, ch. 211, § 1; P.L. 1980, ch. 30, § 1; P.L. 1983, ch. 157, § 1; P.L. 1984, ch. 427, § 1; P.L. 1989, ch. 99, § 1; P.L. 1991, ch. 113, § 2; P.L. 1993, ch. 138, art. 30, § 4; P.L. 1997, ch. 129, § 1; P.L. 1997, ch. 326, § 120; P.L. 1999, ch. 83, § 89; P.L. 1999, ch. 130, § 89; P.L. 2001, ch. 70, § 1; P.L. 2001, ch. 225, § 1; P.L. 2007, ch. 504, § 1; P.L. 2007, ch. 518, § 1; P.L. 2015, ch. 141, art. 22, § 1; P.L. 2017, ch. 193, § 1; P.L. 2017, ch. 241, § 1.

39-18-4.1. Health and safety of passengers.

  1. The authority shall have the power to establish reasonable rules of conduct for passengers for the protection of the health and safety of passengers and employees of the authority. The rules shall incorporate the provisions of the Americans with Disabilities Act of 1990, 42 U.S.C. § 12101 et seq., and § 28-5.1-7 , chapter 28 of title 11, and chapter 87 of title 42 and be promulgated in accordance with the provisions of chapter 35 of title 42.
  2. All controversies arising out of application of any provision of this section shall be determined by the general manager, or his or her designated hearing officer, who shall afford a hearing to the passenger and/or his or her parent or guardian, and, after hearing, shall render a written decision. The decision of the general manager or hearing officer shall be final, except that the passenger aggrieved by the decision shall have a right of appeal to the superior court, which shall affirm the decision unless it is clearly erroneous or contrary to law. The hearing shall be conducted in accordance with the provisions of chapter 35 of title 42.
  3. Notice shall be provided to the RIde funding agency or agencies for any hearing regarding their client/passengers on RIde vehicles. A representative of the RIde funding agency or agencies may attend the hearing. The general manager or hearing officer will consider the recommendation of the RIde funding agency’s representative in rendering his/her decision.
  4. The decision of the general manager or hearing officer may include:
    1. Refusing to transport a person whose violation of the rules of the authority threatens the health and safety of passengers or employees of the authority, for a period not to exceed six (6) months; and/or
    2. Revoking a passenger’s ticket, pass, or other fare medium, regardless of the number of trips or time period for which the ticket, pass, or other fare medium is valid, if the passenger’s continued presence on an authority vehicle or at an authority facility threatens the health or safety of the authority’s other passengers or employees. The authority shall, within a reasonable time after such a revocation, refund to the passenger the unused value of the ticket, pass, or other fare medium.
  5. Nothing under this section precludes any other action permitted by law.
  6. All RIde buses shall be installed with passenger security cameras when federal funds become available for this purpose.
  7. Any person seeking employment as a RIde bus driver shall undergo a criminal background check to be initiated prior to or within one week of employment. All employees hired prior to the enactment of this subsection shall be exempted from its requirements.
    1. The applicant shall apply to the bureau of criminal identification (BCI), department of attorney general, state police, or local police department where he or she resides, for a statewide criminal records check. Fingerprinting shall not be required. Upon the discovery of any disqualifying information as defined in § 23-17-37 , the bureau of criminal identification, the state police, or the local police department will inform the applicant, in writing, of the nature of the disqualifying information; and, without disclosing the nature of the disqualifying information, will notify the employer, in writing, that disqualifying information has been discovered.
    2. An individual against whom disqualifying information has been found may request that a copy of the criminal background report be sent to the employer who shall make a judgment regarding the ability of the individual to drive a RIde bus. In those situations in which no disqualifying information has been found, the bureau of criminal identification, state police, or local police department shall inform the applicant and the employer in writing of this fact.
    3. The criminal record check requirements of this section shall apply only to persons seeking to drive RIde buses.

History of Section. P.L. 1999, ch. 249, § 1; P.L. 2007, ch. 241, § 1; P.L. 2020, ch. 79, art. 1, § 10.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

39-18-4.2. Alteration of bus route — Public hearing.

  1. Any alteration or elimination of any bus route within the system established by the authority pursuant to § 39-18-4 shall not take effect until a public hearing is held in the neighborhood(s) along the affected route.
  2. The public hearing shall take place at least thirty (30) days before the bus route change is scheduled to take effect in the neighborhood(s) along the affected route.
  3. The authority shall also prepare a neighborhood(s) impact statement prior to the public hearing, and provide it to those persons attending the public hearing, the governor, those members of the general assembly whose districts are affected by the change, and the mayor or town administrator of the city or town affected by the change.
  4. Nothing in this section shall be construed to apply to any temporary alteration of a bus route necessitated by including, but not limited to, temporary alterations occasioned by weather, construction activity, emergency, or unforeseen condition.

History of Section. P.L. 2018, ch. 181, § 1; P.L. 2018, ch. 276, § 1.

39-18-5. Credit of state and political subdivisions not pledged.

  1. Bonds issued under the provisions of this chapter shall not be deemed to constitute a debt of the state, or of any political subdivision thereof, or a pledge of the faith and credit of the state, or of any political subdivision. All bonds shall contain, on the face thereof, a statement to the effect that neither the state nor any political subdivision thereof shall be obligated to pay the bonds, or the interest thereon, and that neither the faith and credit nor the taxing power of the state, or of any political subdivision thereof, is pledged to the payment of the principal of or the interest on the bonds.
  2. All expenses incurred in carrying out the provisions of this chapter shall be payable solely from funds provided under the provisions of this chapter, and no liability or obligation shall be incurred by the authority hereunder beyond the extent to which moneys shall have been provided under the provisions of this chapter.

History of Section. P.L. 1964, ch. 210, § 1; P.L. 1983, ch. 157, § 1.

39-18-6. Eminent domain proceedings.

  1. The authority shall have the power to acquire any transit property or any interest therein by the exercise of the power of eminent domain.
  2. The necessity for acquisition shall be conclusively presumed upon the adoption by the authority of a resolution declaring that the acquisition of the transit property or interest therein described in the resolution is necessary to provide transit services. Within six (6) months thereafter, in the event of acquisition by eminent domain, the authority shall cause to be filed in the land evidence records of the city or town in which the transit property is located (for the purpose of this section, all personal property shall be deemed to be located in the city or town where the transit company has its principal place of business), a copy of the resolution of the authority, together with a description of the property or interest therein and a statement signed by the chairperson of the authority that the property is taken pursuant to the provisions of this chapter. Thereupon, the authority shall file in the superior court, in and for the county in which the transit property is located, a statement of the sum of any estimate by the authority to be just compensation for the property taken. If the property is located in more than one county, the statement shall be filed in the superior court in and for the county where the transit company has its principal place of business.
  3. Upon the filing by the authority of the copy of resolution, description, and statement in the land evidence records of the city or town, the filing in the superior court of the statement and the depositing in the superior court to the use of the persons entitled thereto of the sum as the court shall determine to be amply sufficient to satisfy the claims of all persons having an estate or interest in the property (and the court may in its discretion take evidence on the question to determine the sum to be deposited), title to the property shall vest in the authority absolutely and in fee simple, and the authority thereupon may take possession of the property. No sum so paid into the court shall be charged with clerk’s fees of any nature.
  4. After the filing of the copy of resolution, description, and statement, notice of the taking of the property shall be served upon the owners of and persons having an estate in or interest in the property by the sheriff or his or her deputies of the county in which the property is located, leaving a true and attested copy of the description and statement with each of the persons personally or at their last and usual place of abode in this state with some person living there, and in case any of the persons are absent from this state and have no last and usual place of abode therein occupied by any person, the copy shall be left with the persons, if any, in charge of or having possession of the property, or interest therein, taken of such absent persons if the same are known to the officer; and after the filing of the copy of resolution, description, and statement, the secretary of the authority shall cause a copy of the resolution and statement to be published in some newspaper, published or having general circulation in the county where the property, or interest therein, may be located, at least once a week for three (3) successive weeks. If any person shall agree with the authority for the price of the property or interest therein so taken, the court upon the application of the parties in interest, may order that the sum agreed upon be paid forthwith from the money deposited, as the just compensation to be awarded in the proceeding.
  5. Any owner of or persons entitled to any estate in or interest in any part of the real property or interest therein, so taken, who cannot agree with the authority for the price of the property or interest therein so taken in which he or she has an estate or interest as provided in this section, may, within three (3) months after personal notice of the taking, or, if he or she have no personal notice, may, within one year from the first publication of the copy of the resolution and statement, apply by petition to the superior court in and for the county in which the property, or interest therein, lies, setting forth the taking of his or her property, or interest therein, and praying for an assessment of damages. Upon filing of the petition, the court shall cause twenty (20) days’ notice of the pendency thereof to be given to the authority by serving the chairperson of the authority with a certified copy thereof, and may proceed after such notice to the trial thereof; and the trial shall determine all questions of fact relating to the value of property, or interest therein, and the amount thereof, and judgment shall be entered upon the verdict, and execution shall be issued therefor against the money so deposited in court and in default thereof against any other property of the authority. In case two (2) or more conflicting petitioners make claim to the same property, or to any interests therein, or to different interests in the same piece of property or parcel of land, the court upon motion shall consolidate their several petitions for trial at the same time, and may frame all necessary issues for the trial thereof; and all proceedings taken pursuant to the provisions of this chapter shall take precedence over all other civil matters then pending before the court, or if the superior court in and for the county in which such property, or interest therein, lies, be not in session in the county, then the trial may be heard in the superior court for the counties of Providence and Bristol.
  6. If any properties, or interests therein, in which any minor or other person not capable in law to act in his or her own behalf is interested, are taken by the authority under the provisions of this chapter, the superior court, upon the filing therein of any petition by or in behalf of the minor or other person, may appoint a guardian ad litem for the minor or other person, and the guardian may appear and be heard on behalf of the minor or other persons; and the guardian may also, with the advice and consent of the superior court, and upon such terms as the superior court may prescribe, release to the authority all claims for damages for the lands of the minor or other person or for any interests therein. Any lawfully appointed, qualified, and acting guardian or other fiduciary of the estate of any minor or other person, with the approval of the court of probate within this state having jurisdiction to authorize the sale of lands and properties within this state of any minor or other person, may, before the filing of any petition, agree with the authority upon the amount of damages suffered by the minor or other person by any taking of his or her property, or of his or her interests in any property, and may, upon receiving the amount, release to the authority all claims for damages of the minor or other person for the taking.
  7. Whenever, from time to time, the authority has satisfied the court that the amount deposited with the court is greater than is amply sufficient to satisfy the claims of all persons having estates or interests in the property, the court may order that the amount of any excess, including any interests or increment of any sums so deposited, shall be repaid to the authority. Whenever the authority has satisfied the court that the claims of all persons interested in land taken have been satisfied, the unexpended balance, including any interest or increment on any sums so deposited, shall be paid forthwith to the authority.
  8. At any time during the pendency of any proceedings for the assessment of damages for property or interests therein taken, or to be taken, by eminent domain by the authority, the authority or any owner may apply to the court for an order directing an owner or the authority, as the case may be, to show cause why further proceedings should not be expedited, and the court may, upon application, make an order requiring that the hearings proceed and that any other steps be taken with all possible expedition.

History of Section. P.L. 1964, ch. 210, § 1; P.L. 1965, ch. 127, § 5; P.L. 1997, ch. 326, § 120.

Collateral References.

Admissibility of evidence of proposed or possible subdivision or platting of condemned land on issue of value in eminent domain proceedings. 26 A.L.R.3d 780.

Eminent domain: admissibility of photographs or models of property condemned. 23 A.L.R.3d 825.

Eminent domain: admissibility, on issue of value of condemned real property, of rental value of other real property. 23 A.L.R.3d 724.

Eminent domain: payment or deposit of award in court as affecting condemnor’s right to appeal. 40 A.L.R.3d 203.

Evidentiary effect of view by jury in condemnation case. 1 A.L.R.3d 1397.

Existence of restrictive covenant as element in fixing value of property condemned. 22 A.L.R.3d 961.

How to obtain jury trial in eminent domain: waiver. 12 A.L.R.3d 7.

Measure and elements of damage for limitation of access caused by conversion of conventional road into limited-access highway. 42 A.L.R.3d 148.

Measure and elements of damages or compensation for condemnation of public transportation system. 35 A.L.R.4th 1263.

Propriety and effect, in eminent domain proceeding, of argument or evidence as to landowner’s unwillingness to sell property. 17 A.L.R.3d 1449.

Propriety and effect, in eminent domain proceeding, of argument or evidence as to source of funds to pay for property. 19 A.L.R.3d 694.

Propriety and effect, in eminent domain proceeding, of instruction to jury as to landowner’s unwillingness to sell property. 20 A.L.R.3d 1081.

Propriety and effect of argument or evidence as to financial status of parties in eminent domain proceeding. 21 A.L.R.3d 936.

Propriety of court’s consideration of ecological effects of proposed project in determining right of condemnation. 47 A.L.R.3d 1267.

Restrictive covenant or right to enforcement thereof as compensable property right. 4 A.L.R.3d 1137.

Right to condemn property in excess of needs for a particular public purpose. 6 A.L.R.3d 297.

Unity or contiguity of separate properties sufficient to allow damages for diminished value of parcel remaining after taking of other parcel. 59 A.L.R.4th 308.

What constitutes abandonment of eminent domain proceeding so as to charge condemnor with liability for condemnee’s expenses or the like. 68 A.L.R.3d 610.

39-18-7. Bonds.

  1. The authority is hereby authorized to provide, by resolution, for the issuance at one time, or from time to time, of bonds of the authority for any of its purposes. The bonds may be general obligations of the authority or special obligations payable only from particular funds. The bonds of each issue shall be dated, shall bear interest at such rate or rates as may be determined by the authority, and shall mature at such time or times not exceeding thirty (30) years from their date or dates as may be determined by the authority, and may be made redeemable before maturity, at the option of the authority, at such price or prices and under such terms and conditions as may be fixed by the authority prior to the issuance of the bonds. Temporary notes of the authority issued in anticipation of revenues to be received by the authority or in anticipation of the receipt of federal, state, or local grants or other aid shall mature no later than thirteen (13) months from their respective dates or six (6) months after the expected date of receipt of the grants or aid, whichever shall be later, and shall be in an amount not exceeding the limitations imposed by the last paragraph of this section. The authority shall determine the form of the bonds, including any interest coupons to be attached thereto, and shall fix the denomination or denominations of the bonds and the place or places of payment of the principal and interest which may be at any bank or trust company within or without the state. The bonds shall be signed by the chairperson of the authority or shall bear his or her facsimile signature, and the official seal of the authority, or a facsimile thereof, shall be impressed or imprinted thereupon and attested by the secretary of the authority, and any coupons attached to the bonds shall bear the facsimile signature of the chairperson of the authority. In case any officer whose signature or facsimile of whose signature shall appear on any bonds or coupons shall cease to be the officer before the delivery of the bonds, the signature or the facsimile shall, nevertheless, be valid and sufficient for all purposes the same as if he or she had remained in office until delivery. The bonds may be issued in coupon or in registered form, or both, as the authority may determine, and provision may be made for the registration of any coupon bonds as to principal alone, and also as to both principal and interest, for the reconversion into coupon bonds of any bonds registered as to both principal and interest, and for the interchange of registered and coupon bonds. The authority may sell such bonds in such manner either at public or private sale and for the price as it may determine will best effect the purposes of this chapter.
  2. The proceeds of the bonds of each issue shall be disbursed in the manner and under restrictions, if any, as the authority may provide in the resolution authorizing the issuance of the bonds or in the trust agreement described in § 39-18-8 securing the bonds.
  3. Prior to the preparation of definitive bonds, the authority may, under like restrictions, issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when the bonds shall have been executed and are available for delivery. The authority may also provide for the replacement of any bonds that shall become mutilated or shall be destroyed or lost. Except as provided in the following paragraph, bonds may be issued under the provisions of this chapter without obtaining the consent of any department, division, commission, board, bureau, or agency of the state, and without any other proceedings or the happening of any other conditions or things than those proceedings, conditions, or things that are specifically required by this chapter.
  4. No bonds shall be issued by the authority unless, at the time of the adoption by the authority of the resolution authorizing the issuance of the bonds, the authority shall have received from the general manager or chief financial officer of the authority a certificate indicating that the payments of principal (including any payments made to a reserve fund other than payments made from bond proceeds) and interest on the bonds, together with the payments of the principal and interest on all other then outstanding bonds of the authority, will not exceed during any fiscal year of the authority eighty percent (80%) of the revenues (including, without limitation, grants and other aid) of the authority during the fiscal year. In determining the amount of the principal and interest payments to be made during any fiscal year, there shall be deducted any payments to be made from a reserve fund previously established to provide for the payments. The certificate shall be based upon the reasonable expectations (both as to the amount of revenues to be received by the authority and as to the maximum amount of any variable payments to be made on the bonds) of the officer of the authority executing the certificate at the time the certificate is delivered. The certificate shall describe with reasonable particularity the calculations of principal and interest payments and of anticipated revenues upon which the certificate is based. A copy of the certificate shall be furnished to the governor prior to the issuance of the bonds described in the certificate and, in the case of any bonds whose issuance, according to the certificate, is expected to result in the aggregate amount of principal and interest payments (calculated as above) on the bonds and all then outstanding bonds of the authority exceeding in any fiscal year of the authority fifty percent (50%) of the revenues of the authority, the bonds shall not be issued unless the governor shall have approved the issuance or not disapproved the issuance within thirty (30) days of the receipt of the certificate. Approval or disapproval of any bond issue by the governor shall be evidenced by delivery to the authority of a certificate approving or disapproving the issue or any part thereof.

History of Section. P.L. 1964, ch. 210, § 1; P.L. 1965, ch. 127, § 6; P.L. 1983, ch. 157, § 1; P.L. 1997, ch. 326, § 120.

39-18-8. Trust agreement — Other security for bonds.

Bonds issued under the provisions of this chapter may be secured by trust agreement by and between the authority and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the state. The trust agreement or the resolution providing for the issuance of the bonds may pledge or assign the revenues to be received, but shall not convey or mortgage any transit property or any part thereof. The trust agreement or resolution providing for the issuance of the bonds may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including, without limitation, covenants setting forth the duties of the authority in relation to the custody, safeguarding, and application of all moneys, and conditions or limitations with respect to the issuance of additional bonds. It shall be lawful for any bank or trust company incorporated under the laws of the state that may act as depositary of the proceeds of bonds or of revenues to furnish such indemnifying bonds or to pledge such securities as may be required by the authority. Any trust agreement may set forth the rights and remedies of the bondholders and of the trustee, and may restrict the individual right of action by bondholders. In addition to the foregoing, any trust agreement or resolution may contain other provisions as the authority may deem reasonable and proper for the security of the bondholders. All expenses incurred in carrying out the provisions of the trust agreement or resolution may be treated as a part of the authority’s cost of operation and maintenance. Bonds may also be secured by insurance or by letters of credit, or in any other manner deemed appropriate by the authority not inconsistent with the provisions of this chapter, or may be unsecured.

History of Section. P.L. 1964, ch. 210, § 1; P.L. 1983, ch. 157, § 1.

39-18-9. Revenues.

The authority is hereby authorized and empowered to fix and revise, from time to time, such schedules of service and rates of fare and charges for service furnished or operated as it determines to be reasonable. The schedules of service, rates of fare, and charges for service shall not be subject to supervision or regulation by any commission, board, bureau, or agency of the state or of any municipality or other political subdivision of the state; except as provided in § 39-18-4 . Provided, however, any changes in frequency of services of more than fifteen percent (15%), providers of service, rates of service, other than systemwide changes, and charges for service shall be presented for comment in at least one public hearing scheduled in an accessible location in each county affected, and the hearing shall be scheduled in two (2) sessions, one during daytime business hours and one during evening hours. The revenues derived from the authority’s operations and any other funds or property received or to be received by the authority (including, without limitation, any funds or other property received or to be received by the authority pursuant to § 39-18-4 (a)(10)), in whole or in part, at any time and from time to time, may be pledged to, and charged with, the payment of the principal of and the interest on some or all of the authority’s bonds as provided for in the resolution authorizing the issuance of the bonds or in the trust agreement securing the bonds. The pledge shall be valid and binding from the time when the pledge is made; the revenues, funds, or other property so pledged, and thereafter received by the authority, shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act, and the lien of any pledge shall be valid and binding as against all parties having claims of any kind, in tort, contract, or otherwise, against the authority, irrespective of whether the parties have notice thereof. Neither the resolution nor any trust agreement by which a pledge is created need be filed or recorded except in the records of the authority.

History of Section. P.L. 1964, ch. 210, § 1; P.L. 1965, ch. 127, § 7; P.L. 1983, ch. 157, § 1; P.L. 1987, ch. 517, § 1; P.L. 2008, ch. 475, § 21; P.L. 2020, ch. 79, art. 1, § 10.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

39-18-10. Trust funds.

All moneys received pursuant to the provisions of this chapter, whether as proceeds from the sale of bonds or as revenues, shall be deemed to be trust funds to be held and applied solely as provided in this chapter. The authority may, in the resolution authorizing the bonds or in the trust agreement securing the bonds, provide for the payment of the proceeds of the sale of the bonds and the revenues to be received to a trustee, which shall be any trust company or bank having the powers of a trust company within or without the state, which shall act as trustee of the bonds and hold and apply the bonds to the purposes of this chapter, subject to this chapter and to regulations as the resolution or trust agreement may provide, or may provide for the funds to be held in a separate account of the authority maintained at any bank within or without the state to be disbursed therefrom on the instructions of such officer or officers of the authority as may be so authorized and empowered by resolution of the authority.

History of Section. P.L. 1964, ch. 210, § 1; P.L. 1983, ch. 157, § 1.

39-18-11. Remedies.

Any holder of bonds issued under the provisions of this chapter, or any of the coupons pertaining thereto, and the trustee under any trust agreement related thereto, except to the extent the rights given in this chapter may be restricted by the trust agreement, may, by civil action, mandamus, or other proceedings, protect and enforce any and all rights under the laws of the state or granted in this chapter or under the trust agreement or the resolution authorizing the issuance of the bonds, and may enforce and compel the performance of all duties required by this chapter or by the trust agreement or resolution to be performed by the authority or by any officer thereof, including the fixing and revising of schedules and rates of fare and charges for service.

History of Section. P.L. 1964, ch. 210, § 1; P.L. 1983, ch. 157, § 1; P.L. 1997, ch. 326, § 120.

39-18-12. Exemptions from taxation.

The exercise of the powers granted by this chapter will be in all respects for the benefit of the people of the state and for the increase of their commerce, maintenance, and increase of their transportation and general prosperity and for the improvement of their health, welfare, and living conditions and as the acquisition, operation, and maintenance by the authority of the transit properties acquired will constitute the performance of essential governmental functions, the authority shall not be required to pay any taxes or assessments upon the facilities or upon any property acquired or used by the authority under the provisions of this chapter, or upon the income from the operation of the transit facilities. The bonds issued under the provisions of this chapter, their transfer, and income derived therefrom (including any profit made on the sale thereof) at all times shall be free from taxation within the state.

History of Section. P.L. 1964, ch. 210, § 1; P.L. 1965, ch. 127, § 8; P.L. 1983, ch. 157, § 1.

39-18-13. Bonds eligible for investment.

Bonds issued by the authority under the provisions of this chapter are hereby made securities in which all public officers and public bodies of the state and its political subdivisions, all insurance companies, trust companies, banking associations, investment companies, credit unions, building and loan associations, executors, administrators, trustees, and other fiduciaries may properly and legally invest funds, including capital in their control or belonging to them. The bonds are hereby made securities that may properly and legally be deposited with and received by any state or municipal officer or any agency or political subdivision of the state for any purpose for which the deposit of bonds or obligations is now or may hereafter be authorized by law.

History of Section. P.L. 1964, ch. 210, § 1.

39-18-14. Negotiable instruments.

Notwithstanding any of the foregoing provisions of this chapter or any recitals in any bonds issued under the provisions of this chapter, all bonds shall be deemed to be negotiable instruments under the laws of this state.

History of Section. P.L. 1964, ch. 210, § 1.

39-18-15. Refunding bonds.

  1. The authority is hereby authorized to provide for the issuance of bonds of the authority for the purpose of refunding any bonds of the authority, including temporary notes, then outstanding, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of the bonds.
  2. The proceeds of any bonds issued for the purpose of refunding outstanding bonds may, in the discretion of the authority, be applied to the purchase or retirement at maturity or redemption of the outstanding bonds either on their earliest or any subsequent redemption date or upon the purchase or at the maturity thereof, and may, pending application, be placed in escrow to be applied to the purchase or retirement at maturity or redemption on such date as may be determined by the authority.
  3. Any escrowed proceeds, pending such use, may be invested and reinvested in direct obligations of the United States of America, or in certificates of deposit or time deposits secured by direct obligations of the United States of America, maturing at such time or times as shall be appropriate to ensure the prompt payment, as to principal, interest, and redemption premium, if any, of the outstanding bonds to be so refunded. The interest, income, and profits, if any, earned or realized on any investment may also be applied to payment of the outstanding bonds to be so refunded. After the terms of the escrow have been fully satisfied and carried out, any balance of the proceeds and interest, income, and profits, if any, earned or realized on the investments thereof may be returned to the authority for use by it in any lawful manner.
  4. All bonds shall be issued and secured and shall be subject to the provisions of this chapter in the same manner and to the same extent as other bonds issued pursuant to this chapter.

History of Section. P.L. 1964, ch. 210, § 1; P.L. 1965, ch. 127, § 9; P.L. 1983, ch. 157, § 1.

39-18-16. Limitation of powers.

The state does hereby pledge to and agree with any person, firm, corporation, or federal agency subscribing to or acquiring the bonds to be issued by the authority that the state will not limit or alter the rights hereby vested in the authority until all bonds at any time issued, together with the interest thereon, are fully met and discharged. The state does further pledge to and agree with the United States and any other federal agency, that in the event that any federal agency shall contribute any funds for the acquisition and improvement of any transit property or for the authority’s operations or otherwise, the state will not alter or limit the rights and powers of the authority in any manner that would be inconsistent with the due performance of any agreements between the authority and the federal agency; and the authority shall continue to have and may exercise all powers granted in this chapter, so long as the powers shall be necessary or desirable for the carrying out of the purposes of this chapter.

History of Section. P.L. 1964, ch. 210, § 1; P.L. 1983, ch. 157, § 1; P.L. 1997, ch. 326, § 120.

39-18-17. Labor relations with employees of acquired transit facilities.

  1. Whenever the authority acquires transit property facilities under the provisions of this chapter, the authority shall continue the payment of all pensions and retirement allowances under and in accordance with the pension plan in effect at the time of the acquisition.
  2. As of the date of the acquisition of the transit property under the provisions of this chapter, such officers and employees, as may be determined by the authority to be qualified and necessary for the carrying on of the transit operations, shall be transferred to, and become officers and employees of, the authority, it being the intention hereof that transit property facilities acquired by the authority shall at all times be operated under personnel qualified to supervise mass transit facilities. No officer or employee so transferred and becoming an officer or employee of the authority in accordance with this section shall, by reason of the transfer, without his or her consent be removed, lowered in rank or compensation, or suspended except for just cause and for reasons specifically given to him or her in writing within twenty-four (24) hours after the removal, suspension, or transfer or lowering in rank or compensation; nor shall any officer or employee by reason of transfer, without his or her consent, be in any worse position in respect to workers’ compensation, pension, superannuation, sickness, or other benefits or other allowances granted by his or her previous employer to him or her, the widowed person, family, or personal representatives than he or she enjoyed under any person, firm, or corporation under whom he or she held his or her employment immediately prior to his or her transfer to the employment of the authority; provided, however, that the authority may abolish any office or post of any existing executive officer if in the opinion of the authority the office or post is an unreasonable addition to the staff of the authority. The authority shall have the authority to bargain collectively with labor organizations representing employees of the authority and to enter into agreements with the organizations relative to wages, salaries, hours, working conditions, health benefits, pensions, and retirement allowances of the employees.
  3. In case of any labor dispute where collective bargaining does not result in agreement, the authority shall offer to submit the dispute to arbitration by a board composed of three (3) persons, one appointed by the authority, one appointed by the labor organization representing the employees, and a third member to be agreed upon by the labor organization and the authority. The member selected by the labor organization and the authority shall act as chairperson of the board. The determination of the majority of the board of arbitration thus established shall be final and binding on all matters in dispute. If, after a period of ten (10) days from the date of the appointment of the two (2) arbitrators representing the authority and the labor organization, the third arbitrator has not been selected, then either arbitrator may request the American arbitration association to furnish a list of five (5) persons from which the third arbitrator shall be selected. The arbitrators appointed by the authority and the labor organization promptly after the receipt of the list, shall determine by lot the order of elimination, and, thereafter, each shall in that order alternately eliminate one name until only one name remains. The remaining person on the list shall be the third arbitrator. The term “labor dispute” shall be broadly construed and shall include any controversy concerning wages, salaries, hours, working conditions, or benefits, including health and welfare, sick leave, insurance, or pension or retirement provisions, but not limited thereto, and including any controversy concerning any differences or questions that may arise between the parties, including, but not limited to, the making or maintaining of collective bargaining agreements, the terms to be included in the agreements and the interpretation or application of the collective bargaining agreements and any grievances that may arise. Each party shall pay one-half (1/2) of the expenses of the arbitration.

History of Section. P.L. 1964, ch. 210, § 1.

39-18-18. Action by resolution — Reports — Audits.

  1. Any action taken by the authority under the provisions of this chapter may be authorized by resolution at any regular or special meeting, and each resolution shall take effect immediately and need not be published or posted.
  2. Within ninety (90) days after the end of each fiscal year, the authority shall approve and submit an annual report to the governor, the speaker of the house of representatives, the president of the senate, and the secretary of state, of its activities during that fiscal year. The report shall provide: an operating statement summarizing meetings or hearings held, including meeting minutes, subjects addressed, decisions rendered, permits considered and their disposition, rules or regulations promulgated, studies conducted, polices and plans developed, approved, or modified, and programs administered or initiated; a consolidated financial statement of all funds received and expended including the source of the funds, a listing of any staff supported by these funds, and a summary of any clerical, administrative, or technical support received; a summary of performance during the previous fiscal year including accomplishments, shortcomings and remedies; a synopsis of hearings, complaints, suspensions, or other legal matters related to the authority of the authority; a summary of any training courses held pursuant to the provisions of this chapter; a briefing on anticipated activities in the upcoming fiscal year, and findings and recommendations for improvements. The report shall be posted electronically on the websites of the general assembly and the secretary of state pursuant to the provisions of § 42-20-8.2 . The director of the department of administration shall be responsible for the enforcement of the provisions of this subsection.
  3. The director of administration shall cause an annual audit of the books, records, and accounts of the authority to be made and the costs thereof shall be treated as part of the cost of operation of the authority.

History of Section. P.L. 1964, ch. 210, § 1; P.L. 2006, ch. 103, § 5; P.L. 2006, ch. 144, § 5.

39-18-18.1. Authority deemed instrumentality and political subdivision of state.

For the purposes of chapters 42 — 44 of title 28 and chapters 29 — 37 of title 28, and with respect to chapter 31 of title 9, and notwithstanding any inconsistent provisions of these chapters, the authority shall be deemed to be an instrumentality and a political subdivision of the state; provided, however, with respect to chapters 29 — 37 of title 28, the authority shall pay all benefits, required by law, until the authority ceases to exist. Thereafter, the payments shall be the obligation of the state.

History of Section. P.L. 1967, ch. 171, § 1; P.L. 1977, ch. 261, § 1; P.L. 1990, ch. 65, art. 19, § 2.

39-18-19. Severability.

The provisions of this chapter are severable, and if any of its provisions shall be held unconstitutional by any court of competent jurisdiction, the decision of the court shall not affect or impair any of the remaining provisions.

History of Section. P.L. 1964, ch. 210, § 1.

39-18-20. Use of services of department of transportation.

The authority shall use the services of the department of transportation in planning, designing, and constructing transportation services or facilities to the extent that these services are provided by the department of transportation. The authority may use any other services provided by the department of transportation. Nothing in this section shall modify any trust agreement entered into by the Rhode Island public transit authority in accordance with § 39-18-8 , as amended prior to July 1, 1970.

History of Section. P.L. 1970, ch. 111, § 6.

Cross References.

Liberal construction, § 42-13-4 .

Severability, § 42-13-5 .

39-18-21. Agreements and certifications regarding state and federal funds.

The authority and the department of transportation shall be authorized and empowered to enter into agreements, between each other and with others, providing for the assignment to the authority of all or part of any grants, loan, or other money or property of whatever nature received, or to be received, by the department; and the department of transportation is hereby authorized and empowered to certify to the authority, or to others, the amount of funds or property from any federal agency or other source received, or to be received, or reasonably expected to be received, or applied for, which funds or property have been or will be or are expected to be assigned to the authority.

History of Section. P.L. 1983, ch. 157, § 2.

39-18-22. State appropriations.

The general assembly shall appropriate annually a sum for the financial support of the operating expenses of the Rhode Island public transit authority from certain proceeds of the motor fuel tax reserved for this purpose pursuant to § 31-36-20 . The total amount of state subsidy disbursements in any fiscal year shall not exceed the appropriation for that year. In the event that dedicated motor fuel tax revenues received during a fiscal year are not sufficient to support the appropriation for that year, the difference shall be transferred from the proceeds of the motor fuel tax imposed by chapter 36 of title 31. Funds appropriated to the authority pursuant to this section shall be administered by the department of transportation in accordance with procedures established jointly by the departments of transportation and administration. The authority shall annually submit to the department of transportation a comprehensive budget request for funds for the ensuing fiscal year. Prior to the beginning of each fiscal year, the authority shall enter into an agreement with the departments of administration and transportation establishing the conditions for payment of the available state and federal subsidies. The director of administration is authorized, from time to time, to advance funds from the general fund to the Rhode Island public transit authority to be used for the purpose of this section, in anticipation of transfers from the revenues reserved pursuant to § 31-36-20 , provided that the aggregate of all advances less transfers, at any one time, shall not exceed the total amount of the annual appropriation.

History of Section. P.L. 1983, ch. 167, art. 8, § 2; P.L. 1985, ch. 181, art. 2, § 2; P.L. 1987, ch. 118, art. 3, § 1.

39-18-23. Medical care available to employees.

  1. All eligible employees of the Rhode Island public transit authority shall be entitled to purchase benefits set forth in § 36-12-2 at the same rate as the group rate paid by the state for the benefits.
  2. Payments for benefits shall be made by the authority directly to the general treasurer at the rate as calculated by the department of administration.

History of Section. P.L. 1990, ch. 65, art. 19, § 1.

39-18-24. John J. MacDonald, Jr. Transportation Initiative.

  1. The Rhode Island public transit authority is authorized and directed, in consultation with the division of public utilities and carriers and the governor’s commission on disabilities, to develop the “John J. MacDonald, Jr. Transportation Initiative” for a statewide federally funded “New Freedom Program” to reduce barriers to transportation services and expand the transportation mobility options available to people with disabilities who need wheelchair-accessible transportation beyond the requirements of the Americans with Disabilities Act (ADA) of 1990, by September 30, 2010. The goal is to provide on-demand wheelchair-accessible taxicab service throughout the state, and especially at Rhode Island T.F. Green International Airport and the train stations.
  2. The administrator of the division of public utilities and carriers is authorized and directed to issue a regional wheelchair taxicab certificate after a hearing, in accordance with the provisions of chapter 35 of title 42, the administrative procedures act, to any qualified applicant therefore, authorizing the whole or any part of the operations covered by the application, if it is found that the applicant is fit, willing, and able to properly perform the service proposed and to conform to the provisions of chapter 14 of this title, and the requirements, orders, rules, and regulations of the administrator thereunder, and that the proposed service, to the extent to be authorized by the certificate, is or will be required by the present or future public convenience and necessity; otherwise the application shall be denied.
  3. The Rhode Island public transit authority is authorized and directed:
    1. To adopt rules and regulations for the implementation of the John J. MacDonald, Jr. transportation initiative; and
    2. Purchase up to two (2) wheelchair-accessible taxicabs for each regional wheelchair taxicab or public motor vehicle certificate holder, utilizing New Freedom — Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (23 U.S.C. § 101 et seq.) funds for eighty percent (80%) of the cost. The program or purchases thereunder shall be funded by federal grants and private funds only and shall not have a negative financial impact on the Rhode Island public transit authority’s operating budget. The operators of the wheelchair-accessible taxicabs shall be responsible for the twenty percent (20%) nonfederal match for purchase of the vehicles.
  4. The operators of the certified wheelchair-accessible taxicabs or public motor vehicles, and not the Rhode Island public transit authority, shall be responsible for all operating and maintenance costs of the wheelchair-accessible taxicabs or public motor vehicles.
  5. The Rhode Island public transit authority and the division of public utilities and carriers is authorized and directed to begin implementation of the “John J. MacDonald, Jr. Transportation Initiative” on or before January 1, 2011.

History of Section. P.L. 2010, ch. 201, § 1; P.L. 2010, ch. 210, § 1; P.L. 2021, ch. 32, § 9, effective June 1, 2021; P.L. 2021, ch. 36, § 9, effective June 1, 2021.

Compiler's Notes.

P.L. 2021, ch. 32, § 9, and P.L. 2021, ch. 36, § 9 enacted identical amendments to this section.

Federal Act References.

The federal New Freedom program, referred to in subsection (c), has expired. For the current federal program, see 49 U.S.C. § 5310 (enhanced mobility of seniors and individuals with disabilities).

Chapter 18.1 Transportation Investment and Debt Reduction Act of 2011

39-18.1-1. Short title.

This chapter shall be known and may be cited as the “Transportation and Debt Reduction Act of 2011.”

History of Section. P.L. 2011, ch. 151, art. 22, § 1.

39-18.1-2. Legislative findings.

The general assembly finds that:

  1. Rhode Island now has, and for some years has had, a serious shortfall of funds available for the upkeep, maintenance, and repair of the state’s highways, roads, and bridges.
  2. Rhode Island now funds, and for some years has funded, the local twenty percent (20%) match required to bring federal transportation dollars into the state by means of selling bonds. This has proven unsustainable and creates unaffordable debt-service obligations for future generations of Rhode Island taxpayers.
  3. The health, safety, and convenience of Rhode Island’s citizens are seriously and adversely affected when the state’s highways, roads, and bridges are not kept in a proper state of upkeep, maintenance, and repair.
  4. A critically important function of the state in maintaining the health, safety, and welfare of all the people of Rhode Island is to ensure the proper upkeep, maintenance, and repair of the state’s highways, roads, and bridges.
  5. Rhode Island must consider all potential sustainable sources as a vehicle for maintaining and improving the transportation infrastructure of the state.
  6. Additional stable and secure funding sources are absolutely necessary in order for the state to carry out its essential functions, including the upkeep, maintenance, and repair of the state’s highways, roads, and bridges, and providing for the continued functioning and reliability of public transit. In order to avoid to the full extent possible the creation of enormous and unaffordable debt-service obligations for future generations of Rhode Islanders, these funding sources should be created on a pay-as-you-go basis, and bonding should be reduced to the fullest extent practicable.

History of Section. P.L. 2011, ch. 151, art. 22, § 1.

39-18.1-3. Definitions.

When used in this chapter:

  1. “Department of transportation” means the department created by chapter 13 of title 42.
  2. “Director” means the director of the Rhode Island department of transportation.
  3. “Highway maintenance” means the upkeep, maintenance, and repair of the state’s highways, roads, and bridges, including repaving or resurfacing the same.
  4. “State planning council” means the state planning council within the division of planning of the department of administration, as established by § 42-11-10 .
  5. “Transportation improvement program” means the transportation improvement program that is created and amended from time to time by the state planning council.

History of Section. P.L. 2011, ch. 151, art. 22, § 1.

39-18.1-4. Rhode Island highway maintenance account created.

  1. There is hereby created a special account in the intermodal surface transportation fund as established in § 31-36-20 that is to be known as the Rhode Island highway maintenance account.
  2. The fund shall consist of all those moneys that the state may, from time to time, direct to the fund, including, but not necessarily limited to, moneys derived from the following sources:
    1. There is imposed a surcharge of thirty dollars ($30.00) per vehicle or truck, other than those with specific registrations set forth below in subsection (b)(1)(i). Such surcharge shall be paid by each vehicle or truck owner in order to register that owner’s vehicle or truck and upon each subsequent biennial registration. This surcharge shall be phased in at the rate of ten dollars ($10.00) each year. The total surcharge will be ten dollars ($10.00) from July 1, 2013, through June 30, 2014, twenty dollars ($20.00) from July 1, 2014, through June 30, 2015, and thirty dollars ($30.00) from July 1, 2015, through June 30, 2016, and each year thereafter.
      1. For owners of vehicles or trucks with the following plate types, the surcharge shall be as set forth below and shall be paid in full in order to register the vehicle or truck and upon each subsequent renewal:
      2. For owners of trailers, the surcharge shall be one-half (1/2) of the biennial registration amount and shall be paid in full in order to register the trailer and upon each subsequent renewal;
      3. For owners of school buses, the surcharge will be phased in at the rate of six dollars and twenty-five cents ($6.25) each year. The total surcharge will be six dollars and twenty-five cents ($6.25) from July 1, 2013, through June 30, 2014, and twelve dollars and fifty cents ($12.50) from July 1, 2014, through June 30, 2015, and each year thereafter;
      4. From July 1, 2018, and each year thereafter, one hundred percent (100%) will be deposited;
    2. There is imposed a surcharge of fifteen dollars ($15.00) per vehicle or truck, other than those with specific registrations set forth in subsection (b)(2)(i) below, for those vehicles or trucks subject to annual registration, to be paid annually by each vehicle or truck owner in order to register that owner’s vehicle or truck and upon each subsequent annual registration. This surcharge will be phased in at the rate of five dollars ($5.00) each year. The total surcharge will be five dollars ($5.00) from July 1, 2013, through June 30, 2014, ten dollars ($10.00) from July 1, 2014, through June 30, 2015, and fifteen dollars ($15.00) from July 1, 2015, through June 30, 2016, and each year thereafter. (i) For registrations of the following plate types, the surcharge shall be as set forth below and shall be paid in full in order to register the plate, and upon each subsequent renewal: (ii) For owners of trailers, the surcharge shall be one-half (1/2) of the annual registration amount and shall be paid in full in order to register the trailer and upon each subsequent renewal.
    3. There is imposed a surcharge of thirty dollars ($30.00) per license to operate a motor vehicle to be paid every five (5) years by each licensed operator of a motor vehicle. This surcharge will be phased in at the rate of ten dollars ($10.00) each year. The total surcharge will be ten dollars ($10.00) from July 1, 2013, through June 30, 2014, twenty dollars ($20.00) from July 1, 2014, through June 30, 2015, and thirty dollars ($30.00) from July 1, 2015, through June 30, 2016, and each year thereafter. In the event that a license is issued or renewed for a period of less than five (5) years, the surcharge will be prorated according to the period of time the license will be valid;
    4. All fees assessed pursuant to § 31-47.1-11 , and chapters 3, 6, 10, and 10.1 of title 31, except for fees assessed pursuant to §§ 31-10-31(6) and (8), shall be deposited into the Rhode Island highway maintenance account, provided that for fiscal years 2016, 2017, and 2018 these fees be transferred as follows: (i) From July 1, 2015, through June 30, 2016, twenty-five percent (25%) will be deposited; (ii) From July 1, 2016, through June 30, 2017, fifty percent (50%) will be deposited; (iii) From July 1, 2017, through June 30, 2018, sixty percent (60%) will be deposited; and
    5. All remaining funds from previous general obligation bond issues that have not otherwise been allocated.
  3. Effective July 1, 2019, ninety-five percent (95%) of all funds collected pursuant to this section shall be deposited in the Rhode Island highway maintenance account and shall be used only for the purposes set forth in this chapter. The remaining funds shall be retained as general revenues to partially offset cost of collections.
  4. Unexpended balances and any earnings thereon shall not revert to the general fund but shall remain in the Rhode Island highway maintenance account. There shall be no requirement that monies received into the Rhode Island highway maintenance account during any given calendar year or fiscal year be expended during the same calendar year or fiscal year.
  5. The Rhode Island highway maintenance account shall be administered by the director, who shall allocate and spend monies from the fund only in accordance with the purposes and procedures set forth in this chapter.

Plate Type Surcharge Antique $5.00 Farm $10.00 Motorcycle $13.00

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History of Section. P.L. 2011, ch. 151, art. 22, § 1; P.L. 2013, ch. 144, art. 6, § 2; P.L. 2014, ch. 145, art. 21, § 7; P.L. 2017, ch. 302, art. 4, § 5; P.L. 2018, ch. 47, art. 8, § 3; P.L. 2018, ch. 346, § 27; P.L. 2019, ch. 88, art. 8, § 2.

39-18.1-5. Allocation of funds.

  1. The monies in the highway maintenance fund to be directed to the department of transportation pursuant to § 39-18.1-4(b)(1) — (b)(3) shall be allocated through the transportation improvement program process to provide the state match for federal transportation funds, in place of borrowing, as approved by the state planning council. The expenditure of moneys in the highway maintenance fund shall only be authorized for projects that appear in the state’s transportation improvement program.
  2. Provided, however, that beginning with fiscal year 2015 and annually thereafter, the department of transportation will allocate necessary funding to programs that are designed to eliminate structural deficiencies of the state’s bridge, road, and maintenance systems and infrastructure.
  3. Provided, further, that beginning July 1, 2015, five percent (5%) of available proceeds in the Rhode Island highway maintenance account shall be allocated annually to the Rhode Island public transit authority for operating expenditures.
  4. Provided, further, that from July 1, 2017, and annually thereafter, in addition to the amount above, the Rhode Island public transit authority shall receive an amount of not less than five million dollars ($5,000,000) each fiscal year, except for the period July 1, 2019, through June 30, 2022, during which such amount or a portion thereof may come from federal coronavirus relief funds.
  5. Provided, further, that the Rhode Island public transit authority shall convene a coordinating council consisting of those state agencies responsible for meeting the needs of low-income seniors and persons with disabilities, along with those stakeholders that the authority deems appropriate and are necessary to inform, develop, and implement the federally required coordinated public transit human services transportation plan.

    The council shall develop, as part of the state’s federally required plan, recommendations for the appropriate and sustainable funding of the free-fare program for low-income seniors and persons with disabilities, while maximizing the use of federal funds available to support the transportation needs of this population.

    The council shall report these recommendations to the governor, the speaker of the house of representatives, and the president of the senate no later than November 1, 2018.

History of Section. P.L. 2011, ch. 151, art. 22, § 1; P.L. 2014, ch. 145, art. 21, § 7; P.L. 2017, ch. 135, § 1; P.L. 2017, ch. 302, art. 4, § 6; P.L. 2017, ch. 326, § 1; P.L. 2019, ch. 88, art. 8, § 2; P.L. 2020, ch. 79, art. 1, § 11; art. 2, § 22; P.L. 2021, ch. 162, art. 2, § 6, effective July 6, 2021.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

39-18.1-6. Severability.

If any of the provisions of this chapter or the applicability thereof is held invalid by any court of competent jurisdiction, the remainder of the provisions of this chapter shall not be affected thereby.

History of Section. P.L. 2011, ch. 151, art. 22, § 1.

Chapter 19 Community Antenna Television Systems

39-19-1. “Community antenna television system” defined.

“Community antenna television system” or “CATV” as used in this chapter shall mean and include the ownership or operation of a cable television system that receives video or audio signals, electrical impulses, or currents at a central antenna or electronic control center within this state and from which it distributes or transmits such signals, impulses, or currents by a cable or wire system to electronic equipment at a customer’s terminal point within this state.

History of Section. P.L. 1969, ch. 240, § 17; P.L. 2008, ch. 116, § 1; P.L. 2008, ch. 266, § 1.

Comparative Legislation.

Community antenna television systems:

Conn. Gen. Stat. § 16-331 et seq.

Mass. Ann. Laws ch. 166A, § 1 et seq.

Collateral References.

Validity and construction of provision of Cable Communications Policy Act (47 U.S.C. § 541(a)(2)) allowing cable companies access to utility easements on private property. 113 A.L.R. Fed. 523.

39-19-2. Subjection to regulation.

Every company owning or operating a CATV plant in this state is hereby declared to be a communications carrier and, as such, subject to the jurisdiction of and to reasonable rules and regulations as the division may prescribe with reference to the erection and maintenance of distribution facilities and equipment in, under, above, along, across, and upon public highways, bridges, and public places in order to safeguard the safety of the customers and of the public and to preserve the environment and scenic assets of the state.

History of Section. P.L. 1969, ch. 240, § 17.

Collateral References.

Community antenna television systems (CATV) as subject to jurisdiction of state public utility or service commission. 61 A.L.R.3d 1150.

39-19-3. Certificate required.

No person or company shall operate a CATV service unless there shall be in force for the same a valid certificate issued by the administrator authorizing the operation. Every application for a certificate shall be filed with the administrator on a form provided by him or her and shall contain verified answers to such questions and such information as the administrator may propound or require and shall be accompanied by a fee of fifty dollars ($50.00). All certificates shall be nonexclusive. Any additional certificate issued shall not contain terms or conditions more favorable or less burdensome than those imposed on the incumbent company. The administrator, within a reasonable time, shall fix the time and place of hearing on the application.

History of Section. P.L. 1969, ch. 240, § 17; P.L. 1989, ch. 142, § 1.

39-19-4. Persons entitled to certificate.

A certificate shall be issued by the administrator to an applicant therefor if the administrator finds that the applicant is of good character and is fit, willing, technically qualified, and financially able properly to perform the service proposed and to conform to the requirements, orders, rules, and regulations of the division, and that the proposed operation will be consistent with the public interest. No certificate shall be transferred except with the consent and approval of the administrator. The holder of a certificate shall be entitled to retain the same so long as the holder conforms to the orders, rules, and regulations of the division and pays an annual fee of fifty dollars ($50.00).

History of Section. P.L. 1969, ch. 240, § 17.

Collateral References.

Factors affecting award of operating certificate, franchise, or license under state cable television act. 15 A.L.R.4th 961.

Standing to contest award of, or acquisition of right to operate, cable TV certificate, license, or franchise in state court action. 78 A.L.R.3d 1255.

39-19-5. Contents of certificate.

Each certificate shall specify the service to be rendered, the routes of aerial and underground feeder and distribution cables, the area of operation, and any plans, contracts, or arrangements for pole line attachments with a public utility or arrangements with a common carrier, and other appropriate feasibility plans.

History of Section. P.L. 1969, ch. 240, § 17.

39-19-6. Jurisdiction of division.

The division shall supervise and regulate every CATV company operating within this state so far as may be necessary to prevent the operation from having detrimental consequences to the public interest, and for this purpose may promulgate and enforce such reasonable rules and regulations as it may deem necessary with reference to issuance of certificates, territory of operation, abandonment of facilities, elimination of unjust discrimination among subscribers, financial responsibility, and insurance covering personal injury and property damage, safety of equipment and operation, and filing of reports. No certificates shall be issued or remain valid unless the applicant has filed with the division and revised to keep current a schedule of rates and charges for its services. The rates and charges shall be reasonably compensatory so as not to encourage unfair or destructive competitive practices and shall be applied without discrimination. The cable television section of the division of public utilities and carriers shall take all necessary steps to ensure that Rhode Island shall regulate the rates charged by cable television companies to the full extent allowable under federal law; provided, however, the division shall hold public hearings and the cable television companies shall justify and explain at the hearings the necessity for all rate increases of regulated rates. This section shall constitute authority to make any and all certifications to the Federal Communications Commission required under the Cable Television Consumer Protection and Competition Act of 1992, Pub. L. No. 102-385.

History of Section. P.L. 1969, ch. 240, § 17; P.L. 1993, ch. 46, § 1; P.L. 1999, ch. 188, § 1.

Federal Act References.

The federal Cable Television Consumer Protection and Competition Act of 1992 (Pub. L. No. 102-385), referred to in the last sentence of this section, enacted 47 U.S.C. §§ 334, 335, 534 — 537, 544a, 548, and 555a, and amended multiple sections in title 47 of the U.S. Code.

NOTES TO DECISIONS

Scope of Regulatory Authority.

The scope of the Division of Public Utilities and Carriers’ authority to regulate Community Antenna Television operators is not limited solely to those categories mentioned in this section, but extends to areas in which such regulation is necessary in the public interest to prevent “detrimental consequences” to the public. Berkshire Cablevision v. Burke, 488 A.2d 676, 1985 R.I. LEXIS 442 (1985).

Section 7.3 of chapter 14 of the Division of Public Utilities and Carriers’ Rules Governing Community Antenna Television Systems, which respectively set out institutional and individual network and access channel requirements, fall within the division’s jurisdiction to “supervise and regulate . . . so far as may be necessary to prevent such operation from having detrimental consequences to the public interest.” Berkshire Cablevision v. Burke, 488 A.2d 676, 1985 R.I. LEXIS 442 (1985).

Collateral References.

Community antenna television systems (CATV) as subject to jurisdiction of state public utility or service commission. 61 A.L.R.3d 1150.

Validity and construction of municipal ordinances regulating community antenna television service (CATV). 41 A.L.R.3d 384.

39-19-6.1. Public, education and government television studios and equipment.

  1. The division shall be empowered to manage and operate public, education, and government (PEG) access television in Rhode Island; provided, however, that an existing cable television certificate holder may, at its sole discretion, and for as long as it desires to do so, elect to continue to manage a PEG access studio within its service area.
  2. In carrying out the purposes of this section, the division may designate another entity, whether public or private, to actually manage the day-to-day operations of any PEG access studios not being actively managed and operated by an existing cable television certificate holder. These day-to-day operations shall include the responsibility of programming statewide interconnect channels and managing interconnect playback in conjunction with the management of PEG playback.
  3. The division shall fund the operations authorized under this section through PEG access and interconnect fees, which shall be established by the division following public hearing and notice to the state’s cable television certificate holders. The fees shall be paid by the state’s cable television certificate holders which may in turn pass through such expenses to their respective subscribers in accordance with federal law.
  4. In furtherance of exercising this authority, the division shall promulgate such reasonable rules and regulations that the division deems necessary to carry out its responsibilities.

History of Section. P.L. 2013, ch. 144, art. 7, § 6.

39-19-7. Placing of poles and cables.

  1. Every CATV company that receives a certificate from the administrator shall have the right to erect poles or posts or to construct any conduit or other facility or maintain cables, wires, or fixtures upon, under, or over any state or municipal highway or public place for the purpose of operating a CATV service, provided that a permit therefor has first been obtained from the director of transportation or the proper official of the city or town having jurisdiction over the roads or public places, which permission the officials are authorized to give.
  2. All equipment, fixtures, and facilities shall be so placed or constructed as not to unreasonably inconvenience travel on the highway or use thereof by public utilities or other persons or companies having rights therein.

History of Section. P.L. 1969, ch. 240, § 17; P.L. 1970, ch. 206, § 1.

Collateral References.

Placement, maintenance, or design of standing utility pole as affecting private utility’s liability for personal injury resulting from vehicle’s collision with pole within or beside highway. 51 A.L.R.4th 602.

39-19-7.1. Removal of poles and cables.

  1. Whenever, in order to move a building to be used as affordable housing for low- and moderate-income persons for a period of not less than ten (10) years, a nonprofit housing development corporation desires that the poles, posts, conduits, cables, wires, or fixtures erected by a CATV company be cut, disconnected, or removed, the CATV company shall cut, disconnect, or remove the same at its own expense.
  2. A nonprofit housing development corporation that desires the cutting, disconnection, or removal of poles, posts, conduits, cables, wires, or fixtures of a CATV company shall give written notification to the commission and the CATV company at least thirty (30) days before the removal is desired. The written notification must contain the location of the site where the structure is presently located; the location of the final destination of the structure; the path of the proposed move, described in reference to the crossings of streets or highways; and the date of required cutting, disconnection, or removal.
  3. Upon receipt of the written notification described in § 39-2-15.1(b) , the commission shall promptly determine whether the applicant is a nonprofit housing development corporation within the meaning of this chapter, and shall also determine whether the structure to be moved will be maintained as affordable housing for a period of not less than ten (10) years. A resolution, issued by the board of directors of the nonprofit housing development corporation and recorded at the land records office of the locality to where the structure is to be moved, stating that the structure will be used as affordable housing for a period of not less than ten (10) years, shall be satisfactory evidence that the requirements of this section have been satisfied. If the commission determines that the applicant satisfies the requirements of this section, it shall require that the CATV company undertake the actions as requested in the application on the date specified therein.
  4. If, at any time during the ten-year (10) period following the cutting, disconnection, or removal of the pipes, mains, poles, wires, conduits, or fixtures of a public utility, the nonprofit housing development corporation shall utilize the structure for any purpose other than affordable housing, the nonprofit housing development corporation shall reimburse the public utility for the cost of the cutting, disconnection, or removal of the same.

History of Section. P.L. 1988, ch. 580, § 4.

39-19-8. Revocation or change of certificate.

The commission may, after affording the holder an opportunity to be heard, revoke, suspend, or alter any certificate for willful violation of any provision of this chapter, or the rules and regulations or orders promulgated under the authority of this chapter, or for failure to commence operations within a reasonable time, or for other reasonable cause. If a holder of a certificate after commencing operations shall fail for a continuous period of sixty (60) days to render proper service without good reason therefor, the administrator shall revoke the certificate. In the exercise of the police power of the state, the commission may revoke or refuse to renew the license of any CATV company whose programs originating in this state have been adjudged by a court of competent jurisdiction to be obscene.

History of Section. P.L. 1969, ch. 240, § 17; P.L. 1983, ch. 314, § 1.

39-19-8.1. Administrative civil penalties.

The administrator may, in his or her discretion, in lieu of seeking a suspension or revocation of a certificate as conferred under this chapter, impose upon its regulated CATV companies an administrative penalty. Any CATV company that violates any of the provisions of this chapter, or any division order, rule, or regulation issued or promulgated under this chapter, or does any act prohibited in this chapter, or fails or refuses to perform any duty enjoined upon it for which a penalty has not been provided, is subject to a penalty of not less than two hundred dollars ($200) nor more than one thousand dollars ($1,000), and in the case of a continuing violation of any of the provisions of the chapter, every day’s continuance of a violation is a separate and distinct offense.

History of Section. P.L. 2000, ch. 188, § 1.

39-19-9. Administrative expenses — Assessment against franchise holders.

  1. The administrator shall determine the expenses of the division of public utilities and carriers associated with the regulation of operational community antenna television systems, including the cost of division personnel and consultants performing duties directly associated with the systems for each upcoming year. The administrator shall apportion and assess one hundred percent (100%) of the expenses among the several operating CATV franchise holders located in this state in the proportion that the gross revenue of each CATV franchise shall bear to the gross revenues of all of the CATV franchises issued and operational; provided, however, that the sum so apportioned and assessed shall not exceed three percent (3%) of any individual CATV franchise holder’s gross revenues. The sum so apportioned and assessed shall be in addition to any taxes payable to the state under any other provision of law.
  2. CATV franchise awardees that have received compliance-order certificates but have not received operational certificates shall be assessed two thousand five hundred dollars ($2,500) for any fiscal year in which they are franchised but not in operation.
  3. The administrator shall apply any budgetary balance or shortfalls from the preceding annual assessment toward the next fiscal year assessment.
  4. Upon collection from the several franchise holders operating in this state, assessments shall be deposited in the public utilities commission funding account as established pursuant to § 39-1-23 . The moneys deposited in the public utilities commission funding account pursuant to this section shall be expended at the discretion of the administrator for meeting CATV related operations expenses of the division.

History of Section. P.L. 1980, ch. 337, § 1; P.L. 1984, ch. 209, § 1; P.L. 1990, ch. 65, art. 42, § 1; P.L. 1991, ch. 44, art. 10, § 1; P.L. 1995, ch. 332, § 1; P.L. 1998, ch. 365, § 1; P.L. 2000, ch. 150, § 1; P.L. 2010, ch. 23, art. 12, § 1.

39-19-10. Installation of cable television, telephone, telecommunications, or information service in multiple dwelling or commercial units.

Pursuant to the legislative intent that a tenant in a multiple dwelling unit shall have the freedom and right to select the provider of cable television, telephone, telecommunications, or information service to their living unit, without any restraints, limitations, or conditions imposed by a landlord, and to enable CATV operators or other telephone, telecommunications, or information service providers to offer meaningful choices to tenants of multiple dwelling or commercial units, a tenant in a multiple dwelling unit may subscribe to CATV, telephone, telecommunications, or information service, subject to the following provisions:

  1. A CATV operator or other telephone, telecommunications, or information service provider that affixes or causes to be affixed CATV, telephone, telecommunications, or information facilities to the dwelling or commercial unit of a tenant shall (i) Do so at no cost to the landlord of the dwelling, (ii) Indemnify the landlord for damages, if any, arising from the installation and/or the continued operation thereof, and (iii) Not interfere with the safety, functioning, appearance, or use of the dwelling or commercial unit, nor interfere with the reasonable rules and regulations of the owner dealing with the day-to-day operations of the property, including the owner’s reasonable access rules for soliciting business. Nothing in this subsection shall prohibit a landlord from contracting with the CATV operator or other telephone, telecommunications, or information service provider for work in addition to standard installation.
  2. No CATV operator or landlord shall enter into any agreement with persons owning, leasing, controlling, or managing a building served by a CATV system or perform any act that would directly or indirectly diminish or interfere with the rights of any tenant to use a master or individual antenna system.
    1. A CATV operator or other telephone, telecommunications, or information service provider shall have the landlord’s consent to affix CATV system facilities that are necessary to either offer or provide service to a tenant’s dwelling or commercial unit by delivery to the owner, in person or by certified mail, return receipt requested, of a copy of this section and a signed statement that the CATV operator or other telephone, telecommunications, or information service provider will be bound by the terms of this section to the owner or lawful agent of the property upon which the CATV system facilities are to be affixed. A CATV operator or other telephone, telecommunications, or information service provider shall be permitted to affix CATV systems facilities pursuant to this subsection prior to receiving a request for service from a tenant.
    2. The CATV operator or other service provider shall present and review with the owner prior to any installation, plans and specifications for the installation, and shall abide by reasonable installation requests by the owner. The CATV operator or other telephone, telecommunications, or information service provider will inspect the premises with the owner after installation to ensure conformance with the plans and specifications. The owner may waive, in writing, the prior presentation of the plans and specifications. The CATV operator or other telephone, telecommunications, or information service provider shall be responsible for the maintenance of any equipment installed on the owner’s premises and shall be entitled to reasonable access for maintenance. The CATV operator or other service provider shall also, prior to any installation, provide, upon the request of the owner, a certificate of insurance covering all the employees or agents of the installer, CATV operator, or other service provider as well as all equipment of the operator or other telephone, telecommunications, or information service provider.
  3. If the owner of any such real estate intends to require the payment of any sum in excess of a nominal amount, herein defined as one dollar ($1.00), in exchange for permitting the installation of CATV, telephone, telecommunications, or information system facilities to the dwelling or commercial unit of a tenant, the owner shall notify the CATV operator or other service provider by certified mail, return receipt requested, within twenty (20) days of the date on which the owner is notified that the CATV operator or other telephone, telecommunications, or information service provider intends to extend CATV telephone, telecommunications, or information system facilities to the dwelling or commercial unit of a tenant of the owner’s real estate. Absent such notice, it will be conclusively presumed that the owner will not require payment in excess of the nominal amount specified in this subsection for the connection.
  4. If the owner gives notice, the owner will, within thirty (30) days after giving notice, advise the CATV operator or other service provider in writing of the amount the owner claims as compensation for affixing CATV, telephone, telecommunications, or information system facilities to his or her real estate. If within thirty (30) days after receipt of the owner’s claim for compensation the CATV operator or other telephone, telecommunications, or information service provider has not agreed to accept the owner’s demand, the owner may bring an action in the superior court for the county in which the real estate is located to enforce the owner’s claim for compensation. The action shall be brought within six (6) months of the date on which the owner first made a demand upon the CATV operator or other telephone, telecommunications, or information service provider for compensation and not thereafter.
  5. It shall be presumed that reasonable compensation therefor shall be the nominal amount, but the presumption may be rebutted and overcome by evidence that the owner has a specific alternative use for the space occupied by CATV or other telephone, telecommunications, or information system facilities or equipment, the loss of which shall result in a monetary loss to the owner, or that installation of CATV or other telephone, telecommunications, or information system facilities or equipment upon the multiple dwelling or commercial unit will otherwise substantially interfere with the use and occupancy of the unit to an extent that causes a decrease in the resale or rental value of the real estate. In determining the damages to any real estate injured when no part of it is being taken, consideration is to be given only to such injury as is special and peculiar to the real estate, and there shall be deducted therefrom the amount of any benefit to the real estate by reason of the installation of CATV, telephone, telecommunications, or information system facilities.
  6. None of the foregoing steps to claim or enforce a demand for compensation in excess of the nominal amount shall impair or delay the right of the CATV operator, or other service provider to install, maintain, or remove CATV system facilities to a tenant’s dwelling or commercial unit on the real estate. The superior court shall have original jurisdiction to enforce the provisions of this subsection.
    1. In the event that the superior court determines that any individual or entity has unreasonably interfered with the rights granted to tenants, CATV operators, or other service providers as set forth in this subsection, the superior court may award the party seeking enforcement its reasonable attorney’s fees and costs.
    2. Nothing contained herein shall impair the right of a tenant of a multiple dwelling unit or a CATV operator, or other telephone, telecommunications, or information service provider to pursue any other remedies that may be available at law or in equity.
  7. It shall be an unfair trade practice under chapter 13.1 of title 6 for any person owning, leasing, or managing any multiple dwelling unit served by a CATV system or other telephone, telecommunications, or information service provider to discriminate in rental charges or other charges to tenants based on the tenants’ subscription to a CATV, telephone, telecommunications, or information service from and after June 25, 1986, or to demand or accept payment, except as provided in this section, for the affixing of CATV, telephone, telecommunications, or information facilities to a tenant’s dwelling or commercial unit; provided, however, that this subsection shall not apply to contracts entered into on or before June 25, 1986.

History of Section. P.L. 1986, ch. 257, § 1; P.L. 2006, ch. 222, § 1; P.L. 2008, ch. 116, § 1; P.L. 2008, ch. 266, § 1.

Applicability.

P.L. 2006, chapter 222, § 2, provides that the amendment to this section by that act shall not apply to telephone, telecommunications or information service providers with respect to any such facilities affixed to the unit of a tenant prior to the effective date of that act.

39-19-10.1. Installation of cable television in mobile or manufactured home parks.

A tenant in a mobile or manufactured home park may subscribe to CATV service, subject to the following provisions:

  1. A CATV operator that affixes, or causes to be affixed, CATV facilities to the dwelling of a tenant shall (i) Do so at no cost to the landlord of such mobile or manufactured home park, (ii) Indemnify the landlord for damages, if any, arising from the installation and/or the continued operation thereof, and (iii) Not interfere with the safety, functioning, appearance, or use of the mobile or manufactured home park, nor interfere with the reasonable rules and regulations of the owner dealing with the day-to-day operations of the property, including the owner’s reasonable access rules for soliciting business. Nothing in this subsection shall prohibit a landlord from contracting with the CATV operator for work in addition to standard installation.
  2. No CATV operator shall enter into any agreement with persons owning, leasing, controlling, or managing a mobile or manufactured home park served by a CATV system or perform any act that would directly or indirectly diminish or interfere with the rights of any tenant to use a master or individual antenna system.
    1. A CATV operator shall have the landlord’s consent to affix CATV system facilities that are necessary to either offer or provide service to a privately owned utility pole within the mobile or manufactured home park by delivery to the owner, in person or by certified mail, return receipt requested, of a copy of this section and a signed statement that the CATV operator will be bound by the terms of this section to the owner or lawful agent of the property upon which the CATV system facilities are to be affixed. A CATV operator or other telephone, telecommunications, or information service provider shall be permitted to affix CATV systems facilities pursuant to this subsection prior to receiving a request for service from a tenant.
    2. The CATV operator shall present and review with the owner prior to any installation, plans and specifications for the installation, and shall abide by reasonable installation requests by the owner. The CATV operator will inspect the premises with the owner after installation to ensure conformance with the plans and specifications. The owner may waive in writing the prior presentation of the plans and specifications. The CATV operator shall be responsible for the maintenance of any equipment installed on the owner’s premises and shall be entitled to reasonable access for maintenance. The CATV operator shall also, prior to any installation, provide, upon the request of the owner, a certificate of insurance covering all the employees or agents of the installer or CATV operator as well as all equipment of the operator.
  3. If the owner of any privately owned utility pole intends to require the payment of any sum in excess of a nominal amount, herein defined as the amount paid by the CATV operator to utility companies for installation of similar facilities on their poles, in exchange for permitting the installation of CATV system facilities to the privately owned utility pole, the owner shall notify the CATV operator by certified mail, return receipt requested, within twenty (20) days of the date on which the owner is notified that the CATV operator intends to install CATV system facilities on the privately owned utility pole within the mobile or manufactured home park. Absent such notice, it will be conclusively presumed that the owner will not require payment in excess of the nominal amount specified in this subsection for the connection.
  4. If the owner gives notice, the owner will, within thirty (30) days after giving notice, advise the CATV operator in writing of the amount the owner claims as compensation for affixing CATV system facilities to his or her privately owned utility pole. If within thirty (30) days after receipt of the owner’s claim for compensation, the CATV operator has not agreed to accept the owner’s demand, the owner may bring an action in the superior court for the county in which the real estate is located to enforce the owner’s claim for compensation. The action shall be brought within six (6) months of the date on which the owner first made a demand upon the CATV operator for compensation and not thereafter.
  5. It shall be presumed that reasonable compensation therefor shall be the nominal amount, but the presumption may be rebutted and overcome by evidence that the owner has a specific alternative use for the space occupied by CATV system facilities or equipment, the loss of which shall result in a monetary loss to the owner, or that installation of CATV system facilities or equipment upon the privately owned utility pole will otherwise substantially interfere with the use and occupancy of the pole to an extent that causes a decrease in the resale or rental value of the real estate. In determining the damages to any real estate injured when no part of it is being taken, consideration is to be given only to such injury as is special and peculiar to the real estate, and there shall be deducted therefrom the amount of any benefit to the real estate by reason of the installation of CATV system facilities.
  6. None of the foregoing steps to claim or enforce a demand for compensation in excess of the nominal amount shall impair or delay the right of the CATV operator to install, maintain, or remove CATV system facilities to a tenant’s dwelling on the real estate. The superior court shall have original jurisdiction to enforce the provisions of this subsection.
    1. In the event that the superior court determines that any individual or entity has unreasonably interfered with the rights granted to tenants, CATV operators, or other service providers as set forth in this subsection, the superior court may award the party seeking enforcement its reasonable attorney’s fees and costs.
    2. Nothing contained herein shall impair the right of a tenant or a CATV operator or other telephone, telecommunications, or information service provider to pursue any other remedies that may be available at law or in equity.
  7. It shall be an unfair trade practice under chapter 13.1 of title 6 for any person owning, leasing, or managing any mobile or manufactured home park served by a CATV system to discriminate in rental charges or other charges to tenants based on the tenants’ subscription to a CATV service from and after July 1, 1987, or to demand or accept payment, except as provided in this section, for the affixing of CATV facilities to a privately owned utility pole within the mobile or manufactured home park provided, however, that this subsection shall not apply to contracts entered into on or before July 1, 1987.
  8. For the purposes of this section, the phrase “privately owned utility pole” refers to a utility pole that is owned by a person or entity other than a public utility or municipal corporation providing electric or telecommunications services.

History of Section. P.L. 1987, ch. 239, § 1; P.L. 2008, ch. 116, § 1; P.L. 2008, ch. 266, § 1.

39-19-11. Right of cancellation.

Subscribers to cable television may terminate service at any time by requesting disconnection and returning all equipment to the CATV company.

History of Section. P.L. 1986, ch. 257, § 1.

39-19-12. Billing to subscribers.

The cable television section of the division of public utilities and carriers shall conduct a study of the billing and termination practices of cable television companies throughout the New England region. This study shall focus on the practice of advance billing by cable television companies and positive or negative effects on subscribers associated with prohibiting the practice. The study shall also include the financial impact of a prohibition of advanced billing on cable television companies and their subscribers including any technical barriers to prohibiting advance billing. The division shall submit a report to the house corporations committee on or before October 30, 1993. All costs associated with this study shall be billed directly to cable television companies pursuant to § 39-19-9 .

History of Section. P.L. 1993, ch. 46, § 2.

39-19-13. Payment for services — Late charges.

No subscriber to a cable television service shall be subject to an assessment of a late fee on a monthly billing unless the payment is at least forty-five (45) days past the close of the billing period that is the subject of the statement. A cable television operator shall not impose a late fee unless the bill contains a clear and conspicuous notice of when the late fee is to be imposed consistent with this section.

History of Section. P.L. 1993, ch. 46, § 2.

39-19-14. Recovery of expenses from cable television companies.

  1. The cable television company making an application or filing to the division, or subject to a division investigation, shall be charged with and shall pay the expenses reasonably so incurred by the division for the purchase of materials, and for the employment of legal counsel, official stenographers, engineers, accountants, and expert witnesses and for travel, advertising expense, hearing site expense, and other necessary expenses as are reasonably attributable to the investigation or the hearing of the application or filing by the division.
  2. The total amount that may be charged to any cable television company under authority of this section for proceedings before the division in any calendar year shall not exceed forty thousand dollars ($40,000).
  3. The administrator shall ascertain the expenses and shall determine the amount to be paid by the cable television company or companies, and bills shall be rendered therefor, either at the conclusion of the investigation or hearing, or from time to time during its progress, and the amount of each bill so rendered shall be paid by the cable television company to the administrator within thirty (30) days from the date of its rendition unless, within the thirty-day (30) time period, the cable television company so billed shall request an opportunity to be heard by the division as to the amount thereof. The division shall comply with any such request. Any amount of the bill not paid within thirty (30) days from the date of service of the determination upon the hearing, or, if none shall be requested, within thirty (30) days from the date of rendition of the bill, shall draw interest at the rate of twelve percent (12%) per annum. At the discretion of the administrator, cable television companies may be prebilled for contractual services utilized by the division. Any revenue received, but not expended upon the completion of the case, will be promptly reimbursed to the cable television company.
  4. Any person or company making an application to the division for the issuance of a CATV certificate shall be charged with and pay all expenses reasonably incurred by the division in supplying materials and for the employment of legal counsel, official stenographers, engineers, accountants, and expert witnesses, and for travel and other necessary expenses as are reasonably attributable to the investigation or the hearing of the application proposal. Applicants shall pay those fees in full prior to the hearing process commencing unless the administrator agrees to an alternate payment schedule. All fees collected by the division shall be deposited with the general treasurer and appropriated to the division. The administrator is authorized and directed to draw his or her orders upon the general treasurer for payment of any sum or sums as may be necessary, from time to time, and upon receipt by him or her of authenticated vouchers presented by the administrator. Failure of the applicant to pay expenses lawfully assessed by the administrator shall constitute grounds for suspension of regulatory proceedings or revocation of any certificate granted, until the applicant has paid the expenses.

History of Section. P.L. 1995, ch. 329, § 1; P.L. 2001, ch. 28, § 1; P.L. 2001, ch. 67, § 1.

Chapter 20 Ownership of Electric-Generating Facilities

39-20-1. Declaration of public necessity.

Since reliable and economic bulk electric power supply is essential to the safety, health, morals, and welfare of the state and to the sound growth of the communities therein, and in order to promote the general welfare and insure the future power needs of the inhabitants of this state, it is hereby declared to be in the public interest and for a public purpose:

  1. That electric utilities operating in the New England states be permitted to participate together in the common ownership of electric-generating facilities that will contribute towards a reliable bulk power supply in New England, achieve increased reliability and economies of generation, and thereby promote lower overall cost of power within the state;
  2. That such advantages can be obtained through joint planning, ownership, operation, and use, or any combination thereof, of electric-generating facilities within or without the state for the generation of electricity to be consumed within or without the state;
  3. That domestic electric utilities be authorized and granted rights both within and without the state to participate in the ownership of electric-generating facilities; and
  4. That foreign electric utilities be authorized and granted rights within this state to own or participate in the ownership of electric-generating facilities.

History of Section. P.L. 1975, ch. 215, § 1.

Comparative Legislation.

New England power pool:

Conn. Gen. Stat. §§ 7-213 et seq., 7-233a et seq.

Mass. Ann. Laws ch. 164A, § 1 et seq.

39-20-2. Definitions.

In this chapter, unless the context otherwise requires, the following words shall have the following meanings:

  1. “Commission” means the public utilities commission.
  2. “Division” means the division of public utilities and carriers.
  3. “Domestic electric utility” means an electric utility organized under the laws of, or having its principal place of business in, this state.
  4. “Electric-generating facilities” means electric-generating units rated five hundred megawatts (500 MW) or above, and generating stations in commercial generation on or before January 1, 1990, that are subsequently altered or modified to increase the rating of these stations by at least two hundred megawatts (200 MW), and related facilities including those for the transmission of the capacity and related energy from these units or stations.
  5. “Electric utility” means any individual, partnership, corporation, association, or entity, or subdivision thereof, private, governmental, or other, wherever resident or organized, primarily engaged in the generation and sale or purchase and sale of electricity, or the transmission thereof, for ultimate consumption by the public.
  6. “Foreign electric utility” means any electric utility other than a domestic electric utility.

History of Section. P.L. 1975, ch. 215, § 1; P.L. 1976, ch. 334, § 1; P.L. 1990, ch. 171, § 1.

NOTES TO DECISIONS

Commission Supervision.

An electrical cogeneration facility, which could not be considered an “electric utility” or a “electric generating facility,” is not under the commission’s supervision. East Providence v. Public Utils. Comm'n., 566 A.2d 1305, 1989 R.I. LEXIS 167 (1989).

39-20-3. Powers of domestic electric utilities.

Notwithstanding any contrary provisions of any general or special law relating to the powers and authorities of domestic electric utilities or any limitation imposed by their charters (which are hereby amended), but subject to the provisions of this title and this chapter, a domestic electric utility shall have the following additional powers:

  1. Jointly or separately to plan, finance, construct, purchase, operate, maintain, use, share costs of, own, mortgage, lease, sell, provide services for, dispose of, or otherwise participate in electric-generating facilities, or portions thereof, within or without the state, or the product or service therefrom, or securities issued in connection with the financing of electric-generating facilities or portions thereof;
  2. To enter into and perform contracts for joint or separate planning, financing, construction, purchase, operation, maintenance, use, sharing costs of, ownership, mortgaging, leasing, sale, providing services for, disposal of, or other participation in electric-generating facilities, or portions thereof, within or without the state, or the product or service therefrom, or securities issued in connection with the financing of electric-generating facilities or portions thereof, including, without limitation, contracts for the payment of obligations imposed without regard to the operational status of a facility or facilities and contracts with domestic or foreign electric utilities for the sale or purchase of electricity from an electric-generating facility or facilities for long or short periods of time or for the life of a specific electric-generating unit or units; and
  3. To enter into and perform contracts for the transmission both within or without the state of the capacity and related energy from a specifically identified electric-generating facility, wherever located, to its own retail service territory, or to any purchaser of such capacity and related energy; provided, however, that nothing in this section shall be construed to authorize a domestic electric utility to sell electricity at wholesale or retail within or without this state unless:
    1. The sale is authorized under its charter or the general or special laws of this state other than this chapter; or
    2. The sale constitutes a sale of capacity and related energy from a specifically identified electric-generating facility or a sale of economy, backup, and other energy therefrom.

History of Section. P.L. 1975, ch. 215, § 1.

39-20-4. Powers of foreign electric utilities and nonregulated power producers.

  1. Notwithstanding the provisions of §§ 7-1.2-1401 and 7-1.2-1402 , and any other provision of any general or special law relating to the rights of foreign corporations to transact business in this state and to produce a certificate of authority under chapter 1.2 of title 7 to transact business, limiting the powers, rights, and privileges of a foreign corporation procuring a certificate, and establishing the duties, restrictions, penalties, and liabilities imposed on a foreign corporation, but subject to the provisions of this chapter, a foreign electric utility:
    1. Shall have the right to transact business in this state to the extent necessary or desirable to exercise the powers set forth in § 39-20-3 in connection with electric-generating facilities or portions thereof located within this state or the product or service therefrom or securities issued in connection with the financing of the facilities or portions thereof;
    2. Shall be entitled to procure a certificate of authority under chapter 1.2 of title 7 to transact business; and
    3. Shall have within this state the powers set forth in § 39-20-3 in connection with electric-generating facilities or portions thereof located within this state, or the product or service therefrom, or securities issued in connection with the financing of facilities or portions thereof.
  2. Nothing in this section shall be construed to authorize a foreign electric utility to sell electricity at wholesale or retail within this state unless:
    1. The sale is authorized under its charter or the general or special laws of this state other than by this chapter; or
    2. The sale constitutes a sale of capacity and related energy from a specifically identified electric-generating facility within this state or a sale of economy, backup, or other energy therefrom. Nonregulated power producers shall not be subject to this subsection.

History of Section. P.L. 1975, ch. 215, § 1; P.L. 1976, ch. 332, § 1; P.L. 1996, ch. 316, § 1; P.L. 2005, ch. 36, § 25; P.L. 2005, ch. 72, § 25.

39-20-5. Regulation of foreign electric utilities.

  1. A foreign electric utility, in order to procure a certificate of authority to transact business in this state pursuant to this chapter, shall make application therefor to the secretary of state pursuant to the provisions of §§ 7-1.2-1405 and 7-1.2-1406 and shall be subject to §§ 7-1.2-1403 7-1.2-1418 , 7-1.2-1501 and 7-1.2-1601 7-1.2-1604 .
  2. A foreign public utility that has received a certificate of authority to transact business in this state pursuant to this chapter:
    1. Shall, before owning or operating an electric-generating facility in this state, notify the commission of the action to be taken by it;
    2. Shall thereafter furnish to the commission annually a copy of the annual report filed by it with the utility regulatory agency of the state of its domicile or principal locus; and
    3. Shall furnish to the commission, from time to time, such other information with respect to its activities in the state as the commission may reasonably request.

History of Section. P.L. 1975, ch. 215, § 1; P.L. 2005, ch. 36, § 25; P.L. 2005, ch. 72, § 25.

39-20-6. Joint ownership and waiver of the right of partition.

If any domestic or foreign electric utility acquires or owns an interest as a tenant in common with one or more other domestic or foreign electric utilities in any electric-generating facility in this state, the surrender or waiver by any owner of the property of the right to partition the property for a period not exceeding the period for which the property is used or useful for electric utility purposes, shall not be invalid or unenforceable by reason of the length of the period, nor shall such surrender or waiver be construed as unduly restricting the alienation of the property.

History of Section. P.L. 1975, ch. 215, § 1.

39-20-7. Taxation.

  1. The interests of domestic electric utilities and foreign electric utilities in all electric-generating facilities located in this state shall be liable to taxation by the cities and towns under the provisions of chapters 3 — 5 of title 44. To the extent that the interests may be exempt from taxation because: (1) The interests are owned by a quasi-municipal corporation that is exempt by the provisions of its charter from taxation by the city or town assessing the tax; or (2) The interests are owned by an individual, partnership, corporation, association, or entity that is exempt from taxation by any general or special law, the owners shall make payments to the city or town in lieu of those taxes in the same amounts as the taxes that would have been assessed were they not exempt. The payments in lieu of taxes to be made under this section shall be treated in the same manner as taxes for purposes of all procedural and substantive provisions of law, including appeals, now and hereafter in effect applicable to the levy, assessment, collection, cancellation, and abatement of the taxes.
  2. Legislative consent is hereby given to the application of the laws of other states with respect to taxation, payments in lieu of taxes, and the assessment thereof to any domestic electric utility that has acquired or has an interest in an electric-generating facility or a portion thereof without the state or is otherwise acting without the state pursuant to powers granted in this chapter.

History of Section. P.L. 1975, ch. 215, § 1; P.L. 1997, ch. 326, § 121.

39-20-8. Regulation of activities of domestic electric utilities without the state.

Legislative consent is hereby given to the application of regulatory and other laws of other states and of the United States to any domestic electric utility that has acquired or has an interest in an electric-generating facility or a portion thereof without the state or is otherwise acting without the state pursuant to authority granted in this chapter.

History of Section. P.L. 1975, ch. 215, § 1.

39-20-9. [Repealed.]

History of Section. P.L. 1975, ch. 215, § 1; Repealed by P.L. 1976, ch. 332, § 2.

Compiler’s Notes.

Former § 39-20-9 concerned allowance in the proceedings.

39-20-10. Issuance of securities to finance electric-generating facilities.

  1. The purposes for which a domestic public utility may issue stocks, bonds, or other evidences of indebtedness, payable more than twelve (12) months from date of issue, pursuant to §§ 39-3-15 , 39-3-17 39-3-19 , and 39-3-21 shall include the acquisition of ownership of, or other interests in, electric-generating facilities, within or without this state, or portions thereof.
  2. Notwithstanding the provisions of § 39-3-20 , any foreign electric utility, other than a governmental entity, that owns and operates any electric-generating facilities within this state or portions thereof shall be subject to the provisions of §§ 39-3-15 , 39-3-17 39-3-19 , and § 39-3-21 and other regulatory laws within the state with respect to any financing of the cost of its acquisition of ownership of or other interests in the electric-generating facilities, including the issuance of stocks, bonds, or other evidences of indebtedness payable more than twelve (12) months from the date of issue; provided, however, that it shall be exempt from the provisions of this subsection upon the filing with the commission of certification by a regulatory commission of the state of domicile or principal locus of the foreign electric utility, or of the United States, that the regulatory commission has regulatory jurisdiction over the financing of the foreign electric utility.

History of Section. P.L. 1975, ch. 215, § 1.

39-20-11. Zoning and other municipal regulation.

For purposes of § 39-1-30 , any domestic and foreign electric utility that owns or participates in the ownership of any plant, building, wires, conductors, fixtures, structures, equipment, or apparatus in this state pursuant to this chapter shall be considered a company under the supervision of the commission.

History of Section. P.L. 1975, ch. 215, § 1.

39-20-12. Construction and severability.

This chapter shall be construed in all respects so as to meet all constitutional requirements. Except as expressly provided for in this chapter, the provisions of this chapter shall not affect the interpretation of other laws. If any provision of this chapter shall be held unconstitutional, the unconstitutionality shall not affect any other provisions.

History of Section. P.L. 1975, ch. 215, § 1; P.L. 1997, ch. 326, § 121.

Chapter 21 E-911 Uniform Emergency Telephone System Division

39-21-1. Legislative findings.

It is hereby found and disclosed that:

  1. E-911 uniform emergency telephone system is a feasible service and would be beneficial for the citizens of Rhode Island;
  2. E-911 uniform emergency telephone system employs features that contribute to the protection of life and property and add to the operational efficiency of various public safety agencies;
  3. E-911 uniform emergency telephone system affords our residents a more simple and faster means to request assistance in an emergency and, in addition, enables the various agencies to process emergency calls in a more efficient manner than at present;
  4. E-911 uniform emergency telephone system benefits are extremely valuable and this service would be an enhancement to the quality of life throughout our state; and
  5. Changes in consumer habits require that the state E-911 uniform emergency telephone system take the steps necessary to ensure that its operating capabilities are in line with new technologies and practices.

History of Section. P.L. 1984, ch. 155, art. 6, § 1; P.L. 2016, ch. 516, § 1.

Legislative Intent.

P.L. 1985, ch. 181, art. 60 provides: “It is the intention of the General Assembly to transfer to the Executive Department all of the powers and duties necessary to operate the E-911 Uniform Emergency Telephone System which are presently contained in Title 39, Chapter 21 of the General Laws. It is the intention that said transfer will take place once the system is operational and functional. Said transfer should occur by legislative action effective July 1, 1988, at which time the system should be operational. Once this transfer is accomplished, the E-911 Uniform Emergency Telephone System Authority should become advisory in nature.”

Comparative Legislation.

Emergency 911 telephone systems:

Conn. Gen. Stat. § 28-24 et seq.

Mass. Ann. Laws ch. 166, § 14A.

Collateral References.

Liability for failure of police response to emergency call. 39 A.L.R.4th 691.

39-21-2. Establishment of the E-911 uniform emergency telephone system division.

There is hereby established within the department of public safety the E-911 uniform emergency telephone system division with all powers and authority necessary for acquiring, planning, designing, constructing, extending, improving, operating, maintaining, and updating the uniform emergency telephone system in this state to conform with national standards and support national internetworking of 9-1-1 services.

History of Section. P.L. 1989, ch. 126, art. 36, § 5; P.L. 2008, ch. 100, art. 9, § 8; P.L. 2016, ch. 516, § 1.

Repealed Sections.

Former §§ 39-21-2 39-21-2 0 (P.L. 1984, ch. 155, art. 6, § 1), concerning the E-911 Uniform Emergency Telephone System Authority, were repealed by P.L. 1989, ch. 126, art. 36, § 3, effective June 30, 1989. Section 4 of P.L. 1989, ch. 126, art. 36, enacted a new chapter title for chapter 21 entitled “E-911 Uniform Emergency Telephone System Division.” Section 5 of P.L. 1989, ch. 126, art. 36 enacted §§ 39-21-2 — 39-21-16 .

Legislative Intent.

As to the legislative findings and intent in the enactment of this chapter by P.L. 1989, ch. 126, art. 36, § 5, see section 1 of P.L. 1989, ch. 126, art. 36.

39-21-3. Personnel.

  1. The governor shall appoint an associate director of the E-911 uniform emergency telephone system division who shall direct the affairs of the division. The division may employ technical experts, and other officers, agents, and attorneys, and fix their qualifications, duties, and compensation. The associate director and the technical experts, officers, agents, and attorneys so employed shall be in the unclassified service of the state. The division may employ other employees, permanent and temporary, and the employees shall be in the unclassified service of the state. The division may delegate to one or more of its agents or employees such administrative duties as it may deem proper.
  2. The department of administration shall furnish the division with suitable offices and telephone service in the state house, state office building, or some other location, for the transaction of business.

History of Section. P.L. 1989, ch. 126, art. 36, § 5; P.L. 2008, ch. 100, art. 9, § 8.

39-21-4. Advisory commission.

  1. There shall be an E-911 uniform emergency telephone system advisory commission consisting of fourteen (14) members to be appointed in the following manner: five (5) members shall be the director of the department of health, or his or her designee, the fire marshal, or his or her designee, the colonel of the Rhode Island state police, or his or her designee, the state telecommunications director, or his or her designee, and the administrator of the division of public utilities and carriers, or his or her designee; three (3) members shall be appointed by the speaker of the house: one of whom shall be a member of the house of representatives, and one of whom shall be a representative of the police chiefs’ association, and one of whom shall be a representative of the telecommunication services provider that is the primary provider to the E-911 PSAP; three (3) members shall be appointed by the president of the senate: one of whom shall be a member of the senate, one of whom shall be a representative of the fire chiefs’ association, and one of whom shall be a representative of the wireless telecommunication industry; and three (3) members shall be appointed by the governor: two (2) of whom shall be representatives of the public, and one of whom shall be a representative of the Rhode Island League of Cities and Towns.
  2. Members of the commission shall serve five-year (5) terms, except for ex officio members.
  3. The advisory commission may make such recommendations and give such advice to the executive director of the division as it deems appropriate.

History of Section. P.L. 1989, ch. 126, art. 36, § 5; P.L. 1998, ch. 150, § 2; P.L. 2001, ch. 180, § 82.

Law Reviews.

For article, “Appointments by the Legislature Under the Rhode Island Separation of Powers Doctrine: The Hazards of a Road Less Traveled,” see 1 R.W.U.L. Rev. 1 (1996).

39-21-5. Other references to E-911 uniform emergency telephone system — References to “the project” or to “9-1-1 system.”

  1. Wherever in the Rhode Island general laws, chapters 21 and 21.1 of title 39, reference is made to the “E-911 uniform emergency telephone system,” or to “the E-9-1-1 Uniform Emergency Telephone System Authority,” or to “the E-9-1-1 authority,” or to “the division” or to “E-9-1-1” or to “Next Generation 9-1-1 ,” or “NG 9-1-1 ” or “Text-to-9-1-1,” as an entity, it shall be deemed to mean the E-911 uniform emergency telephone system division within the executive department.
  2. Wherever in the Rhode Island general laws, chapters 21 and 21.1 of title 39, reference is made to “the project” or to “911 system,” it shall be deemed to mean the E-911 uniform emergency telephone system and its respective functions and operations.

History of Section. P.L. 1989, ch. 126, art. 36, § 5; P.L. 2002, ch. 206, § 1; P.L. 2002, ch. 261, § 1; P.L. 2016, ch. 516, § 1.

39-21-6. Cooperation with federal government.

  1. The division shall have full and complete authority to cooperate with and assist the federal government in all matters relating to the planning, constructing, equipping, maintenance, and operation of the project in the event that the federal government should make any federal funds or federal assistance available therefor.
  2. The division, or any officers or executives designated by it, may act as agent of the federal government in accordance with the requirements of any federal legislation related to federal assistance.
  3. The division is hereby authorized to accept the provisions of any federal legislation, and may file written evidence of each acceptance with the federal government. Each acceptance shall be duly signed by the associate director or such other person or persons as the governor or director of public safety may designate.
  4. The division may enter into all necessary contracts and agreements with the federal or state governments, or any agency thereof, necessary or incident to the project, and all contracts and agreements shall be signed in the name of the division by the associate director or some other person or persons designated by the governor or director of public safety.

History of Section. P.L. 1989, ch. 126, art. 36, § 5; P.L. 2008, ch. 100, art. 9, § 8.

39-21-7. Applications for federal and state aid.

Whenever it shall be necessary to obtain assistance from the federal or state government in the form of loans, advances, grants, subsidies, and otherwise, directly or indirectly, for the execution of the project, the division may make all necessary applications for such purposes. All applications shall be made in writing in the name of the division and shall be duly signed by the associate director or other person or persons as the governor or director of public safety may designate.

History of Section. P.L. 1989, ch. 126, art. 36, § 5; P.L. 2008, ch. 100, art. 9, § 8.

39-21-8. Use of federal and state funds.

The division may, for the purpose of carrying out the project or any part thereof authorized by this chapter, accept or use any federal or state funds or assistance, or both, provided thereof under any federal or state law. In the event that federal or state funds or assistance are made available for execution of the project, the project shall be carried out and executed in all respect subject to the provisions of the appropriate federal and state laws providing for the construction and operation of such projects, and the rules and regulations made pursuant thereto, and to such terms, conditions, rules, and regulations, not inconsistent with such federal and state law, rules, and regulations, as the division may establish to ensure the proper execution of the project.

History of Section. P.L. 1989, ch. 126, art. 36, § 5; P.L. 1997, ch. 326, § 122.

39-21-9. Receipt and deposit of federal funds.

All money paid to the division by the federal government for the purpose of executing a project shall be received by the general treasurer and by him or her deposited in the fund, and the division shall forthwith use the money for the payment of debt service on, or the recall or the redemption of, bonds and notes issued by the state in anticipation of federal project payments.

History of Section. P.L. 1989, ch. 126, art. 36, § 5.

39-21-10. Appropriation of revenues.

With the exception of money received by the division from the sale or licensing of communications and educational materials regarding the use of 911 as a uniform emergency telephone number and system, all money received by the division for the use of the facilities of the project shall be paid over to the general treasurer and by him or her deposited in the fund. All money in the fund is hereby appropriated by the provisions of the chapter to be expended by the division for administration and all expenses relating to the planning, construction, equipping, operation, and maintenance of the project; and the state controller is hereby authorized and directed to draw his or her orders upon the general treasurer for the payment of such sum or sums as may be necessary from time to time. All money received by the division for the sale or licensing of communications and educational materials as described in this chapter shall be deposited into a separate account or fund by the general treasurer for the sole restricted purpose of financially supporting the creation, distribution, and use of public educational materials regarding the use of 911 as a uniform emergency telephone number and system. For these purposes, the state controller is hereby authorized and directed to draw his or her orders upon the general treasurer for the payment of such sum or sums as may be necessary, from time to time, as determined by the associate director, or his or her designee.

History of Section. P.L. 1989, ch. 126, art. 36, § 5; P.L. 1997, ch. 326, § 122; P.L. 2008, ch. 100, art. 9, § 8; P.L. 2020, ch. 79, art. 1, § 12.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

39-21-11. Rules and regulations — Review.

The division may adopt rules and regulations, or any amendment to existing rules and regulations, according to the provisions of chapter 35 of title 42. The division shall also give notice thereof, prior to the effective date thereof, by sending by registered or certified mail a copy thereof to each person interested therein who shall have registered with the division his or her name and address, with a request to be so notified. Review of the rules may be had as provided in chapter 35 of title 42.

History of Section. P.L. 1989, ch. 126, art. 36, § 5.

39-21-12. Cost of E-911 service to provider.

The telephone common carrier shall recover the necessary capital and operating costs of providing access for E-911 within the common carrier’s tariff rates for E-911 service. The common carrier is directed to establish and file with the public utilities commission a tariff with rates recovering the capital and operating costs of providing access to the network.

History of Section. P.L. 1989, ch. 126, art. 36, § 5; P.L. 1989, ch. 126, art. 45, § 1; P.L. 1992, ch. 133, art. 65, § 1.

39-21-13. Division expenses as cost of project.

The expenses of the division in the performance of its duties under this chapter shall be construed to be costs of operation and maintenance of the project.

History of Section. P.L. 1989, ch. 126, art. 36, § 5; P.L. 1997, ch. 326, § 122.

39-21-14. Cooperation and coordination with other agencies.

In the performance of its duties under this chapter, the division shall be entitled to ask for and to receive from any public or private agency and any other commission, board, officer, agency, or municipal subdivision of the state such information, cooperation, assistance, and advice as shall be reasonable and proper in view of the nature of its functions.

History of Section. P.L. 1989, ch. 126, art. 36, § 5; P.L. 1997, ch. 326, § 122; P.L. 2002, ch. 206, § 1; P.L. 2002, ch. 261, § 1.

39-21-15. Liberal construction.

The provisions of this chapter shall be construed liberally in order to accomplish the purposes hereof, and where any specific power is given to the division by the provisions hereof, the statement shall not be deemed to exclude or impair any power otherwise in this chapter conferred upon the division.

History of Section. P.L. 1989, ch. 126, art. 36, § 5.

39-21-16. State agencies — Toll-free telephone line.

The state shall provide, for the use of the general public, a toll-free watts telephone line and number for each public agency that utilizes the 277 exchange.

History of Section. P.L. 1989, ch. 126, art. 36, § 5.

39-21-17. Next generation 911.

The E-911 uniform emergency telephone system division shall take all steps necessary to implement “Next Generation-9-1-1,” “NG 9-1-1 ,” or “Text-to-9-1-1” technologies as soon as practicable, and report back to the general assembly no later than March 30, 2017, a timeline that anticipates the date of completion.

History of Section. P.L. 2016, ch. 516, § 2.

Chapter 21.1 911 Emergency Telephone Number Act

39-21.1-1. Purpose.

  1. The purpose of this chapter is to establish the number 911 as the primary emergency telephone number for use in the state and to develop and improve emergency communications procedures and facilities with the objective of reducing the response time to emergency calls for law enforcement, fire, medical, rescue, and other emergency services.
  2. It is hereby declared by the general assembly that:
    1. Availability and type of 911 service in the state.  The citizens of this state enjoy enhanced 911 service where a public safety answering point (PSAP) telecommunicator receives the 911 call, the pertinent information about the nature and location of the emergency by questioning the caller, and confirms the telephone number and address of the calling party. E-911 saves lives and property by helping emergency services personnel do their jobs more quickly and efficiently.
    2. E-911 capabilities.  E-911 information includes Automatic Location Identification (ALI), which permits the prompt dispatch of emergency assistance to the street address of the wireline phone. This capability is especially important where the caller is disoriented, disabled, unable to speak, or does not know his or her location. ALI also reduces the errors in reporting the location of the emergency and in forwarding accurate information to emergency personnel. Automatic Number Identification (ANI) allows the number of the calling party to be displayed at the PSAP. With ANI, the PSAP can call back the party if the call is disconnected. The general assembly finds that ALI and ANI are critical components of effective emergency services.
    3. Wireless 911 capabilities.  Mobility, the primary advantage of wireless technologies, creates complexities for providing E-911 service, necessitating special action for wireless E-911 services.
    4. The need for wireless E-911 services.  It has been reported that the total number of wireless subscribers in the United States exceeds 42 million, and 9.6 million new subscribers were added in 1995 alone. Currently, there are almost thirty thousand (30,000) new wireless subscribers each day, amounting to a forty percent (40%) annual growth rate. Industry studies report that a majority of new subscribers cite safety and security as a primary reason for purchasing a mobile phone. These statistics underscore the growing popularity of mobile communications. With this growth, wireless customers place a large and increasing portion of 911 emergency calls received by PSAPs. In 1994 alone, almost eighteen million (18,000,000) wireless calls were made nationwide to 911 and other public service numbers. It is in the health and safety interests of the citizens of this state that wireless 911 services be enhanced to provide critical ALI and ANI information.
    5. The FCC mandate for wireless E-911.  In July, 1996, the Federal Communications Commission (FCC) took several important steps to foster major improvements in the quality and reliability of wireless 911 services (FCC Docket No. 94-102). The FCC directed wireless carriers to deliver wireless E-911 information to PSAPs by April 1, 1998. The FCC also directed that wireless carriers, by October 1, 2001, identify to the PSAP the latitude and longitude of a mobile unit making an E-911 call within a radius of no more than one hundred twenty-five (125) meters in sixty-seven percent (67%) of all cases.
    6. PSAP’S ability to receive wireless E-911 information.  Currently, E-911 does not have the necessary systems, facilities, and trained personnel to receive ANI and ALI on wireless calls. It is in the health and safety interests of the citizens of this state that PSAPs have the capability to receive and process wireless E-911 calls, and to require standards of quality of service, performance of service, and technological compliance of all providers of telecommunication services.
    7. Conditions for providing wireless E-911.  The FCC mandate only applies if (a) PSAPs capable of receiving and utilizing the data elements associated with the E-911 services formally request such services from the wireless carriers in their jurisdiction and (b) a mechanism for the recovery of costs relating to the provision of such services is available. The FCC left it to each state to ensure that a mechanism is in place to permit carriers to recover costs associated with providing E-911 services. The general assembly finds that it is in the public interest to ensure that the conditions imposed by the FCC on wireless carriers to provide E-911 services are met as soon as possible so that the citizens of this state will have more reliable and efficient wireless emergency services.
    8. The need for a funding mechanism.  Wireline Enhanced 911 services in the state are funded by telephone subscribers. Wireless 911 services are not funded. Funding for wireless E-911 service will be necessary to ensure PSAPs have the necessary systems to be capable of receiving E-911 information from wireless carriers. Further, given the continued rise in the use of wireless communications, PSAPs will experience increasing demand and incur additional costs for ongoing operation and maintenance of the emergency 911 system. Wireless carriers will incur costs to upgrade systems to be capable of meeting the FCC mandate and will incur a continuous cost in providing E-911 information. The general assembly finds that the principal purpose of wireless E-911 funding is for wireless carriers to recover the costs of providing E-911 services and therefore to fulfill the FCC mandate.
    9. Establishment and purpose of an E-911 emergency services fund.  To ensure that adequate and sustained funding for E-911 statewide emergency services exists so that wireless and wireline E-911 systems can be implemented, maintained, and provided at optimum technical levels, and E-911 services performed at optimum skill levels, the legislature finds that it is necessary and proper to establish a “911 emergency services fund.” The 911 emergency services fund shall be the cost recovery mechanism for all E-911 service providers and shall serve as the means through which PSAP upgrades, including upgrades required to receive E-911 information from wireless carriers, may be implemented and maintained.
    10. Indemnification.  Given the complexity of providing E-911 services, the general assembly finds that it is appropriate to provide immunity from civil liability for landline and wireless E-911 service providers. Further, the general assembly finds that to encourage innovation in the provision of emergency services, it is in the public interest to also extend immunity by statute to any person that provides equipment or services for the establishment, maintenance, or operation of E-911 services. Immunity would not extend to willful or wanton acts of misconduct by the E-911 service provider or its employees and agents.

History of Section. P.L. 1986, ch. 152, § 1; P.L. 1997, ch. 123, § 1.

Comparative Legislation.

Emergency 911 telephone systems:

Conn. Gen. Stat. § 28-24 et seq.

39-21.1-2. Short title.

This chapter may be cited as the “911 Emergency Telephone Number Act.”

History of Section. P.L. 1986, ch. 152, § 1.

39-21.1-3. Definitions.

As used in this chapter:

  1. “Automatic location identification (ALI)” means the system capability to identify automatically the geographical location of the telephone being used by the caller and to provide a display of the location information at a public safety answering point.
  2. “Automatic number identification (ANI)” means the system capability to identify automatically the calling telephone number and to provide a display of that number at a public safety answering point.
  3. “Communications common carrier” means any person, party, or entity that provides communications services for profit by way of wire or radio. It includes re-sellers of such services.
  4. “Communications services” means the transmission of sounds, messages, data, information, codes, or signals between a point or points of origin and a point or points of reception.
  5. “Prepaid wireless E-911 telecommunications service” means a wireless telecommunications service that allows a caller to dial 911 to access the 911 system, which service must be paid for in advance and is sold in predetermined units or dollars of which the number declines with use in a known amount.
  6. “Private safety agency” means a private entity that provides emergency fire, ambulance, or medical services.
  7. “Public agency” means the state government and any unit of local government or special purpose district located in whole or in part within the state that provides, or has authority to provide, firefighting, law enforcement, ambulance, medical, or other emergency services.
  8. “Public safety agency” means a functional division of a public agency that provides firefighting, law enforcement, ambulance, medical, or other emergency services.
  9. “Public safety answering point (PSAP)” means a communications facility operated on a twenty-four (24) hour basis, assigned responsibility to transmit 911 calls to other public safety agencies. It is the first point of reception of a 911 call by a public safety agency and serves the entire state.
  10. “Relay method” means the method of responding to a telephone request for emergency service whereby a public safety answering point notes pertinent information and relays it by telephone to the appropriate public safety agency or other provider of emergency services for dispatch of an emergency service unit.
  11. “Selective call routing” means a feature that routes a 911 call from a central office to the designated public safety answering point based upon the telephone number of the calling party.
  12. “Telecommunication services provider,” for purposes of this chapter and of chapter 21 of this title, means every person, party, or entity that provides communications services, telephony services, voice or data transmission services, and wireless prepaid services, including, but not limited to: audio, print information, voice over internet protocol (VoIP), data or visual information, communication or transmission or any combination thereof, for profit on a subscription, wireless prepaid service, wireless prepaid telephone calling arrangement or pay-for-services or any other basis by means of landline local telephone exchange, cellular telephone, wireless communication, radio, telephony, internet, data, satellite, computer, prepaid wireless telephone, voice over internet protocols (VoIP) instruments, devices or means, or any other communication or data instruments devices or means that have access to, connect with, or interface with the E-911 uniform emergency telephone system. Telecommunication service provider includes “telephone common carrier,” “communications common carrier,” “telephone companies,” and “common carrier” as those terms are used in this chapter and in chapter 21 of this title, and “telecommunication common carrier” as defined in the Code of Federal Regulations at 47 C.F.R. part 22, as amended from time to time, and as defined in the NENA Master Glossary of 9-1-1 Terminology as amended from time to time.
  13. “Telephone common carrier” means any person, party, or entity that provides communications services for profit between a point of origin and a point of reception by way of a land-line wire connection between the two (2) points. It includes re-sellers of such services.
  14. “Telephone service provider” means every person, party, or entity that provides telephone services to subscribers or wireless prepaid customers including, but not limited to, “telephone common carrier” and “telecommunications service providers.”
  15. “Telephony” or “telephony services provider” (see “Telephone service provider”).
  16. “The 911 authority” means the agency of the state government in which responsibility for administering the implementation and operation of the 911 system is vested by the general assembly.
  17. “Transfer method” means the method of responding to a telephone request for emergency service whereby a public safety answering point transfers the call directly to the appropriate public safety agency or other provider of emergency service for dispatch of an emergency service unit.
  18. “Voice over internet protocol (VoIP)” provides distinct packetized voice or data information in digital format using the Internet Protocol.

History of Section. P.L. 1986, ch. 152, § 1; P.L. 1987, ch. 236, § 1; P.L. 1997, ch. 123, § 1; P.L. 2005, ch. 365, § 2; P.L. 2010, ch. 23, art. 9, § 11.

39-21.1-4. Confidentiality.

Automatic number identification (ANI) and automatic location identification (ALI) information that consists of the name, address, and telephone numbers of telephone subscribers shall be confidential. Dissemination of the information contained in the 911 automatic number and automatic location database is prohibited except for the following purposes:

  1. The information will be provided to the public safety answering point (PSAP) on a call-by-call basis only for the purpose of handling emergency calls or for training, and any permanent record of the information shall be secured by the public safety answering points and disposed of in a manner that will retain that security except as otherwise required by applicable law.
  2. All telephone calls and telephone call transmissions received pursuant to this chapter, and all tapes containing records of telephone calls, shall remain confidential and used only for the purpose of handling emergency calls and for public safety purposes as may be needed for law enforcement, fire, medical, rescue, or other emergency services. The calls shall not be released to any other parties without the written consent of the person whose voice is recorded, or upon order of the court.
  3. The ALI — ANI Database may be provided to all city, state, and town emergency management agencies, fire departments, and police departments of the state of Rhode Island for the purposes of, and restricted to, establishing systems of emergency public warning. “ALI — ANI Database” shall be defined as automatic location identification and automatic number identification information identifying the land-line telephone numbers and addresses (but shall not include the names, whether listed, unlisted, or unpublished) of subscribers to telephone common carrier services in the state.
  4. Telephone numbers, including listed, unlisted, and unpublished numbers, and street numbers and addresses (excluding individual names), if contained within the Rhode Island E-911 ALI — ANI Database, may be provided by Rhode Island E-911, on a reasonable basis as determined by Rhode Island E-911 to city, state, and town emergency management agencies, fire departments, and police departments for the sole purpose of allowing an individual city, state, or town emergency management agency, fire department, and/or police department to warn local residents of imminent and significant threats to public safety.
  5. The city or town local emergency warning system ALI — ANI Database shall be located in a restricted access and secured facility located within the local emergency management office, fire department, and/or police department. Additionally, the local emergency warning system ALI — ANI Database shall be secure from unauthorized access and shall be accessible only by the city or town emergency management director, fire chief, or police chief and no more than three (3) department members (who shall be known as emergency warning officers), appointed in writing by the respective department director or chief, with a copy of the appointment that includes the name, title, and duration of appointment sent to Rhode Island E-911. The activation of the local emergency warning system can only be approved and authorized by the department director or chief or his or her authorized emergency warning officer. Any access to the local ALI — ANI database shall be documented by use of a secure electronic log that records such access and which shall be maintained for a period of no less than twelve (12) months. Any unauthorized and/or inappropriate access of the local emergency warning system ALI — ANI Database is to be reported immediately in writing to Rhode Island E-911.
  6. A violation of the provisions of this section shall be a criminal offense punishable by up to one year imprisonment and/or a fine not to exceed one thousand dollars ($1,000).

History of Section. P.L. 1986, ch. 152, § 1; P.L. 1987, ch. 236, § 1; P.L. 1993, ch. 77, § 1; P.L. 1996, ch. 184, § 1; P.L. 2006, ch. 228, § 1; P.L. 2020, ch. 79, art. 1, § 13.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

39-21.1-5. Establishment of 911 service.

  1. The state shall establish a single, central statewide emergency 911 system equipped with selective call routing, automatic number identification, and automatic location identification. All telecommunication service providers who operate within this state shall provide access to the E-911 uniform emergency telephone system with selective call routing, automatic number identification, and automatic location identification capabilities in accordance with this chapter, with the rules and regulations of the Federal Communications Commission and of the Rhode Island public utilities commission, and with such other rules and regulations promulgated by the 911 authority. Before the public utilities commission shall grant any license, permit, power, or authority to operate or shall approve any tariff, rate, or similar compensation measure to any telephone common carrier or telecommunication services provider pursuant to this title, it shall obtain a certificate of compliance from the 911 authority, certifying that the telephone common carrier or telecommunication services provider that is seeking such grant or approval is in compliance with the standards of quality of service, performance of service, and technological compliance adopted by the 911 authority pursuant to chapter 21 of this title. No license, permit, power, or authority to operate shall be granted, or any tariff, rate, or similar compensation measure be approved, until and unless the telephone common carrier or telecommunication service provider is in full compliance with such standards.
  2. The digits “911” shall be the primary emergency telephone number within the state.
  3. Nothing in this chapter shall be construed to prohibit or discourage the municipalities to maintain separate, secondary backup telephone numbers for emergency and nonemergency telephone calls. Dissemination of the information contained in the database for any other than emergency purpose is prohibited. The 911 emergency telephone number is not intended as a total replacement for the telephone service of the public safety agencies. The public safety answering point will not use the 911 system for administrative purposes, for placing outgoing calls, or for receiving nonemergency calls.
  4. Any addition to the basic 911 system that may be required by any municipality may be made at the municipality’s expense, provided that the addition is approved by the 911 authority.
    1. The 911 authority and the telephone common carrier contracting with the authority shall not be liable for any inadequate database information submitted to the 911 authority by the municipality, its agents, or servants.
    2. Notwithstanding the provisions of chapter 31 of title 9, the telephone common carrier, its agents, and employees are hereby indemnified and held harmless by the 911 authority and the state for civil damages for any action or omission in connection with the 911 or E-911 systems unless the action or omission constitutes gross negligence or wanton and willful misconduct.
  5. Any expense incurred by a municipality shall not be deemed a state mandate pursuant to § 45-13-9 .
  6. The telephone common carrier shall not issue or permit the usage of any three-digit (3) telephone number for emergency purposes other than the digits “911” as provided in this chapter.
  7. The state of Rhode Island, the E-911 uniform emergency telephone system authority, local public service answering points, E-911 service providers, including telephone common carriers and telecommunication services providers and their respective employees, directors, officers, representatives, or agents shall not be liable to any person for civil damages resulting from or caused by any act or omission in the development, design, installation, operation, maintenance, performance, or provision of E-911 service, except to the extent due directly to its willful misconduct or gross negligence. Also, no provider of E-911 service, including a telecommunication services provider, shall be liable to any person who uses E-911 service, for the release of subscriber information, including but not limited to, billing information required under this act, to any public safety answering point or to the state of Rhode Island or the E-911 uniform emergency telephone system.

History of Section. P.L. 1986, ch. 152, § 1; P.L. 1987, ch. 236, § 1; P.L. 1992, ch. 133, art. 65, § 2; P.L. 1995, ch. 143, § 1; P.L. 1997, ch. 123, § 1.

Compiler's Notes.

In 2021, “and Providence Plantations” was deleted following “state of Rhode Island” in this section at the direction of the Law Revision Director to reflect the 2020 amendments to the state constitution that changed the state's name.

Collateral References.

Liability for failure of police response to emergency call. 39 A.L.R.4th 691.

39-21.1-6. Other agencies — E-911 authority.

The 911 authority, or any other agency that may replace it, shall plan, implement, and operate the 911 system, as provided by this chapter.

History of Section. P.L. 1986, ch. 152, § 1; P.L. 1987, ch. 236, § 1.

39-21.1-7. Methods of handling emergency telephone calls.

The 911 system designs should include provisions for expansion to include capabilities not required in initial implementation. The public safety answering point may handle nonemergency calls by referring the caller to another number.

History of Section. P.L. 1986, ch. 152, § 1.

39-21.1-8. Emergency services included in system.

  1. The 911 system shall be capable of transmitting requests for law enforcement, firefighting, and emergency medical and ambulance services to a public safety agency or agencies that provide the requested service at the place where the call originates. In response to requests for emergency medical or ambulance services, the 911 system dispatchers shall also provide for the communication of instructions to callers during the period before the arrival of emergency responders. By September 1, 2022, the 911 system shall include telecommunicator cardiopulmonary resuscitation (“T-CPR”), provided by certified emergency medical dispatchers (EMD) who have satisfactorily completed a training course that meets the requirements of the U.S. Department of Transportation, National Highway Traffic Safety Administration, Emergency Medical Dispatch (EMD); National Standard Curriculum, as from time to time amended, and any other requirements pursuant to § 23-4.1-3(c) . The 911 system may also provide for transmittal of requests for other emergency services, such as poison control, suicide prevention, and civil defense. Conferencing capability with counseling, aid to persons with disabilities, and other services as deemed necessary for emergency response determination may be provided by the 911 system.
  2. Any unit of any agency or municipality in this state that provides law enforcement, firefighting, medical, or ambulance services to an area shall be part of the 911 system. The 911 public safety answering point may transmit emergency response requests to private safety agencies.
  3. Automatic intrusion alarms and other automatic alerting devices shall not be installed so as to cause the number 911 to be dialed in order to directly access emergency services.
  4. A comprehensive call review and quality improvement program including, but not limited to, all cardiac arrest and critical calls as well as a random sampling of all calls from the emergency telephone system shall be established.
  5. All 911 system dispatchers shall be certified in EMD and trained in telecommunicator cardiopulmonary resuscitation (“T-CPR”) to coach a person calling in about a cardiac arrest incident until the rescue or other emergency service unit arrives. EMD continuing education shall be provided for 911 system dispatchers.
  6. No 911 system operator who renders emergency assistance to a person in need thereof shall be liable for civil damages that result from acts or omissions by the person rendering the emergency care, which may constitute ordinary negligence. This immunity does not apply to acts or omissions constituting gross negligence or willful or wanton conduct.

History of Section. P.L. 1986, ch. 152, § 1; P.L. 1987, ch. 236, § 1; P.L. 1999, ch. 83, § 90; P.L. 1999, ch. 130, § 90; P.L. 2021, ch. 82, § 1, effective June 23, 2021; P.L. 2021, ch. 83, § 1, effective June 23, 2021.

Compiler's Notes.

P.L. 2021, ch. 82, § 1, and P.L. 2021, ch. 83, § 1 enacted nearly identical amendments to this section.

39-21.1-9. Pay telephones, dialing without a coin.

Every pay station telephone of a telephone common carrier served from a central office having a dial-tone-first capability shall permit a caller to dial 911, or to reach an operator by dialing “0,” without first inserting a coin or paying any other charge. No telephone common carrier shall eliminate the dial-tone-first capability from any central office having this capability on June 13, 1986.

History of Section. P.L. 1986, ch. 152, § 1.

39-21.1-10. Development of a statewide plan and technical standards.

  1. On or before July 1, 1987, the E-911 uniform emergency telephone system division shall publish an overall plan that it has developed for implementing 911 service in Rhode Island in accordance with the provisions of this chapter. The plan shall include technical and operational standards for 911 systems. Public agencies shall comply with these standards.
  2. The E-911 uniform emergency telephone system division, or any other agency that may replace it, may promulgate rules and regulations related to telecommunication service providers as are just and reasonable and in the public interest to implement the provisions of this chapter.

History of Section. P.L. 1986, ch. 152, § 1; P.L. 1987, ch. 236, § 1; P.L. 1998, ch. 150, § 1.

39-21.1-11. System coordination.

Each local public agency shall designate a coordinator who shall serve as the point of contact in working with the 911 authority or any other agency that may replace it.

History of Section. P.L. 1986, ch. 152, § 1.

39-21.1-12. Enforcement of compliance by judicial proceedings.

The attorney general shall, at the request of the E-911 uniform emergency telephone system division, or any other agency that may replace it, or on its own initiative, commence judicial proceedings in the superior court against any public agency, municipality, or telecommunication services provider providing communication services to enforce the provisions of this chapter.

History of Section. P.L. 1986, ch. 152, § 1; P.L. 1998, ch. 150, § 1.

39-21.1-13. Provision of emergency services across jurisdictional boundaries — Joint power or other agreements.

  1. A public safety agency that receives a request for emergency service outside its jurisdictional or operational boundaries shall promptly forward the request, utilizing the transfer or relay method, to the public safety answering point or public safety agency responsible for that geographical area.
  2. Once a public safety answering point or public safety agency dispatches an emergency unit, the unit shall render its services to the requesting party without regard to the unit’s normal jurisdictional boundaries, until it is properly relieved by the public safety agency responsible for that geographical area.
  3. Public agencies within a single system, and public agencies in different systems but which share common boundary lines, are authorized to enter into joint power agreements or other written cooperative agreements to implement these requirements. These agreements may further provide for a public safety agency to render aid outside its normal jurisdictional boundaries on a regular basis.

History of Section. P.L. 1986, ch. 152, § 1.

39-21.1-14. E-911 surcharge and first response surcharge.

    1. A monthly E-911 surcharge of fifty cents ($.50) is hereby levied upon each residence and business telephone line or trunk, or path and data, telephony, internet, voice over internet protocol (VoIP) wireline, line, trunk, or path in the state including PBX trunks and centrex equivalent trunks and each line or trunk serving, and upon each user interface number or extension number or similarly identifiable line, trunk, or path to or from a digital network (such as, but not exclusive of, integrated services digital network (ISDN), Flexpath, or comparable digital private branch exchange, or connecting to or from a customer-based or dedicated telephone switch site (such as, but not exclusive of, a private branch exchange (PBX)), or connecting to or from a customer-based or dedicated central office (such as, but not exclusive of, a centrex system but exclusive of trunks and lines provided to wireless communication companies) that can access to, connect with, or interface with the Rhode Island E-911 uniform emergency telephone system (RI E-911). In each instance where a surcharge is levied pursuant to this subsection (a)(1) there shall also be a monthly first response surcharge of fifty cents ($.50). The surcharges shall be billed by each telecommunication services provider at the inception of services and shall be payable to the telecommunication services provider by the subscriber of the services.
    2. A monthly E-911 surcharge of fifty cents ($.50) is hereby levied on each wireless instrument, device, or means, including prepaid, cellular, telephony, internet, voice over internet protocol (VoIP), satellite, computer, radio, communication, data or data only wireless lines, or any other wireless instrument, device, or means that has access to, connects with, or activates or interfaces or any combination thereof with the E-911 uniform emergency telephone system. In each instance where a surcharge is levied pursuant to this subsection (a)(2) there shall also be a monthly first response surcharge of seventy-five cents ($.75). The surcharges shall be billed by each telecommunication services provider and shall be payable to the telecommunication services provider by the subscriber. Prepaid wireless telecommunications services shall not be included in this act, but shall be governed by chapter 21.2 of this title. The E-911 uniform emergency telephone system shall establish, by rule or regulation, an appropriate funding mechanism to recover from the general body of ratepayers this surcharge.
  1. The amount of the surcharges shall not be subject to the tax imposed under chapter 18 of title 44 nor be included within the telephone common carrier’s gross earnings for the purpose of computing the tax under chapter 13 of title 44.
  2. Each telephone common carrier and each telecommunication services provider shall establish a special account to which it shall deposit on a monthly basis the amounts collected as surcharges under this section.
  3. The money collected by each telecommunication services provider shall be transferred within sixty (60) days after its inception of wireline, wireless, prepaid, cellular, telephony, voice over internet protocol (VoIP), satellite, computer, internet, or communications services in this state and every month thereafter, to the division of taxation, together with the accrued interest. The E-911 surcharge shall be deposited in a restricted-receipt account and used solely for the operation of the E-911 uniform emergency telephone system. The first response surcharge shall be deposited in the general fund; provided, however, that ten percent (10%) of the money collected from the first response surcharge shall be deposited in the information technology investment fund established pursuant to § 42-11-2.5 . Any money not transferred in accordance with this subsection shall be assessed interest at the rate set forth in § 44-1-7 from the date the money should have been transferred.
  4. Every billed subscriber-user shall be liable for any surcharge imposed under this section until it has been paid to the telephone common carrier or telecommunication services provider. Any surcharge shall be added to and shall be stated separately in the billing by the telephone common carrier or telecommunication services provider and shall be collected by the telephone common carrier or telecommunication services provider.
  5. Each telephone common carrier and telecommunication services provider shall annually provide the E-911 uniform emergency telephone system division, or any other agency that may replace it, with a list of amounts uncollected, together with the names and addresses of its subscriber-users who can be determined by the telephone common carrier or telecommunication services provider to have not paid the E-911 surcharge.
  6. Included within, but not limited to, the purposes for which the money collected from the E-911 surcharge may be used, are rent, lease, purchase, improvement, construction, maintenance, repair, and utilities for the equipment and site or sites occupied by the E-911 uniform emergency telephone system; salaries, benefits, and other associated personnel costs; acquisition, upgrade, or modification of PSAP equipment to be capable of receiving E-911 information, including necessary computer hardware, software, and database provisioning, addressing, and non-recurring costs of establishing emergency services; network development, operation, and maintenance; database development, operation, and maintenance; on-premise equipment maintenance and operation; training emergency service personnel regarding use of E-911; educating consumers regarding the operations, limitations, role, and responsible use of E-911; reimbursement to telephone common carriers or telecommunication services providers of rates or recurring costs associated with any services, operation, administration, or maintenance of E-911 services as approved by the division; reimbursement to telecommunication services providers or telephone common carriers of other costs associated with providing E-911 services, including the cost of the design, development, and implementation of equipment or software necessary to provide E-911 service information to PSAPs, as approved by the division.
  7. [Deleted by P.L. 2000, ch. 55, art. 28, § 1.]
  8. Nothing in this section shall be construed to constitute rate regulation of wireless communication services carriers, nor shall this section be construed to prohibit wireless communication services carriers from charging subscribers for any wireless service or feature.
  9. [Deleted by P.L. 2006, ch. 246, art. 4, § 1.]

History of Section. P.L. 1986, ch. 152, § 1; P.L. 1987, ch. 236, § 1; P.L. 1992, ch. 133, art. 65, § 2; P.L. 1993, ch. 138, art. 73, § 1; P.L. 1997, ch. 123, § 1; P.L. 1998, ch. 31, art. 9, § 1; P.L. 1998, ch. 150, § 1; P.L. 2000, ch. 55, art. 28, § 1; P.L. 2001, ch. 160, § 1; P.L. 2002, ch. 65, art. 13, § 15; P.L. 2005, ch. 365, § 2; P.L. 2006, ch. 246, art. 4, § 1; P.L. 2007, ch. 73, art. 4, § 2; P.L. 2010, ch. 23, art. 9, § 11; P.L. 2014, ch. 145, art. 9, § 5; P.L. 2018, ch. 47, art. 7, § 9; P.L. 2019, ch. 88, art. 2, § 8.

39-21.1-15. Severability.

If any provision of this chapter or the application thereof to any person or circumstances is held invalid, the invalidity shall not affect other provisions or applications of the chapter that can be given effect without the invalid provision or application, and to this end the provisions of this chapter are declared to be severable.

History of Section. P.L. 1986, ch. 152, § 1.

39-21.1-16. Providing false information.

No person shall call or otherwise cause the number nine-one-one (911) to be called for the purpose of knowingly making a false alarm or complaint or reporting false information that could result in the dispatch of emergency services from any public agency as defined in § 39-21.1-3(7) . Any person violating the provisions of this section, upon conviction, shall be guilty of a misdemeanor punishable by a fine of not more than one thousand dollars ($1,000) or imprisonment for a term not exceeding one year, or both.

History of Section. P.L. 1988, ch. 90, § 1; P.L. 2020, ch. 79, art. 1, § 13.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

39-21.1-17. Confidentiality of calls.

All telephone calls and telephone call transmissions received pursuant to this chapter and all tapes containing records of telephone calls shall remain confidential and used only for the purpose of handling emergency calls and for public safety purposes as may be needed for law enforcement, fire, medical, rescue or other emergency services. The calls shall not be released to any other parties without the written consent of the caller whose voice is recorded, or upon order of the court.

History of Section. P.L. 1996, ch. 180, § 1.

39-21.1-18. First responder services.

In emergency situations that require emergency medical transportation services and arise out of a 911 emergency telephone system request, only those ambulance services that are operated by municipalities, for municipalities by contracted services, by fire districts, or nonprofit corporations shall be used.

History of Section. P.L. 1999, ch. 337, § 1.

Chapter 21.2 Prepaid Wireless Charge Act

39-21.2-1. Short title.

This act may be cited as the “Prepaid Wireless Charge Act of 2010.”

History of Section. P.L. 2010, ch. 23, art. 9, § 12; P.L. 2018, ch. 47, art. 7, § 10.

39-21.2-2. Findings.

The legislature finds that:

  1. Maintaining effective and efficient emergency services across the state benefits all citizens;
  2. 911 fees imposed upon the consumers of telecommunications services that have the ability to dial 911 are an important funding mechanism to assist state and local governments with the deployment of emergency services to the citizens of this state;
  3. Prepaid wireless telecommunication services are an important segment of the telecommunications industry and have proven particularly attractive to low-income, low-volume consumers;
  4. Unlike traditional telecommunications services, prepaid wireless telecommunications services are not sold or used pursuant to term contracts or subscriptions, and monthly bills are not sent to consumers by prepaid wireless telecommunication services providers or retail vendors;
  5. Prepaid wireless consumers have the same access to emergency 911 services from their wireless devices as wireless consumers on term contracts, and prepaid wireless consumers benefit from the ability to access the 911 system by dialing 911;
  6. Consumers purchase prepaid wireless telecommunication services at a wide variety of general retail locations and other distribution channels, not just through service providers;
  7. Such purchases are made on a “cash-and-carry” or “pay-as-you-go” basis from retailers; and
  8. To ensure equitable contributions to the funding of emergency systems from consumers of prepaid wireless telecommunication services, the collection and payment obligation of charges to support E-911 should be imposed upon the consumer’s retail purchase of the prepaid wireless telecommunication service and should be in the form of a single, statewide charge that is collected once at the time of purchase directly from the consumer, remitted to the state, and distributed to E-911 authorities pursuant to state law.

History of Section. P.L. 2010, ch. 23, art. 9, § 12; P.L. 2018, ch. 47, art. 7, § 10; P.L. 2019, ch. 88, art. 2, § 9.

39-21.2-3. Definitions.

For purposes of this chapter, the following terms shall have the following meanings:

  1. “Consumer” means a person who purchases prepaid wireless telecommunications service in a retail transaction.
  2. “Division” means the division of taxation.
  3. “Prepaid wireless charge” means the charge that is required to be collected by a seller from a consumer in the amount established under § 39-21.2-4 .
  4. “Prepaid wireless telecommunications service” means a wireless telecommunications service that allows a caller to dial 911 to access the 911 system, which service must be paid for in advance and is sold in predetermined units or dollars of which the number declines with use in a known amount.
  5. “Provider” means a person who or that provides prepaid wireless telecommunications service pursuant to a license issued by the Federal Communications Commission.
  6. “Retail transaction” means the purchase of prepaid wireless telecommunications service from a seller for any purpose other than resale.
  7. “Seller” means a person who or that sells prepaid wireless telecommunications service to another person.
  8. “Wireless telecommunications service” means commercial mobile radio service as defined by 47 C.F.R. § 20.3, as amended.

History of Section. P.L. 2010, ch. 23, art. 9, § 12; P.L. 2018, ch. 47, art. 7, § 10; P.L. 2020, ch. 79, art. 1, § 14.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

39-21.2-4. E-911 surcharge.

  1. Amount of charge.  The prepaid wireless E-911 charge is hereby levied at the rate of two and one-half percent (2.5%) per retail transaction.
  2. Collection of charge.  The prepaid wireless charge shall be collected by the seller from the consumer with respect to each retail transaction occurring in this state. The amount of the prepaid wireless charge shall be either separately stated on an invoice, receipt, or other similar document that is provided to the consumer by the seller, or otherwise disclosed to the consumer.
  3. Application of charge.  For purposes of subsection (b) of this section, a retail transaction that is effected in person by a consumer at a business location of the seller shall be treated as occurring in this state if that business location is in this state, and any other retail transaction shall be treated as occurring in this state if the retail transaction is treated as occurring in this state for purposes of chapter 18 of title 44.
  4. Liability for charge.  The prepaid wireless charge is the liability of the consumer and not of the seller or of any provider, except that the seller shall be liable to remit all prepaid wireless charges that the seller collects from consumers as provided in § 39-21.2-5 , including all such charges that the seller is deemed to collect where the amount of the charge has not been separately stated on an invoice, receipt, or other similar document provided to the consumer by the seller.
  5. Exclusion of charge from base of other taxes and fees.  The amount of the prepaid wireless charge that is collected by a seller from a consumer, if such amount is separately stated on an invoice, receipt, or other similar document provided to the consumer by the seller, shall not be included in the base for measuring any tax, fee, surcharge, or other charge that is imposed by this state, any political subdivision of this state, or any intergovernmental agency, including, but not limited to, the tax imposed under chapter 18 of title 44, nor be included within the telephone common carrier’s gross earnings for the purpose of computing the tax under chapter 13 of title 44.
  6. [Deleted by P.L. 2019, ch. 88, art. 2, § 9.]
  7. Bundled transactions.  When prepaid wireless telecommunications service is sold with one or more other products or services for a single, non-itemized price, then the percentage specified in subsection (a) of this section shall apply to the entire non-itemized prices unless the seller elects to apply the percentage (1) If the amount of prepaid wireless telecommunications service is disclosed to the consumer as a dollar amount, the dollar amount, or (2) If the retailer can identify the portion of the price that is attributable to the prepaid wireless telecommunications service, by reasonable and verifiable standards from its books and records that are kept in the regular course of business for other purposes, including, but not limited to, non-tax purposes, the portion.

    However, if a minimal amount of prepaid wireless telecommunications service is sold with a prepaid wireless device for a single, non-itemized price, then the seller may elect not to apply the percentage specified in subsection (a) of this section to such transaction. For purposes of this paragraph, an amount of service denominated as ten (10) minutes or less, or five dollars ($5.00) or less, is minimal.

History of Section. P.L. 2010, ch. 23, art. 9, § 12; P.L. 2018, ch. 47, art. 7, § 10; P.L. 2019, ch. 88, art. 2, § 9; P.L. 2020, ch. 79, art. 1, § 14.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

39-21.2-5. Administration of E-911 charge.

  1. Time and manner of payment.  Prepaid wireless E-911 charges collected by sellers shall be remitted to the division at the times and in the manner provided by the streamlined sales and use tax as described in § 44-18.1-34 . The division shall establish registration and payment procedures that substantially coincide with the registration and payment procedures that apply to the streamlined sales and use tax.
  2. Seller administrative deduction.  A seller shall be permitted to deduct and retain one percent (1%) of prepaid wireless E-911 charges that are collected by the seller from consumers.
  3. Audit and appeal procedures.  The audit and appeal procedures applicable to sales and use tax under chapter 19 of title 44 shall apply to prepaid wireless E-911 charges.
  4. Exemption documentation.  The division shall establish procedures by which a seller of prepaid wireless telecommunications service may document that a sale is not a retail transaction, which procedures shall substantially coincide with the procedures for documenting sale for resale transactions for sales tax purposes under § 44-18-25 .
  5. All E-911 fees collected pursuant to this section shall be deposited in a restricted-receipt account and used solely for the operation of the E-911 uniform emergency telephone system.

History of Section. P.L. 2010, ch. 23, art. 9, § 12; P.L. 2019, ch. 88, art. 2, § 9; P.L. 2020, ch. 79, art. 1, § 14.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

39-21.2-6. Liability.

No liability regarding 911 service. No provider or seller of prepaid wireless telecommunications service shall be liable for damages to any person resulting from or incurred in connection with the provision of, or failure to provide, 911 or E-911 service, or for identifying, or failing to identify, the telephone number, address, location, or name associated with any person or device that is accessing or attempting to access 911 or E-911 service.

History of Section. P.L. 2010, ch. 23, art. 9, § 12.

39-21.2-7. Exclusivity of prepaid wireless charge.

The prepaid wireless charge imposed by this act shall be the only E-911 funding obligation imposed with respect to prepaid wireless telecommunications service in this state, and no tax, fee, surcharge, or other charge shall be imposed by this state, any political subdivision of this state, or any intergovernmental agency, for E-911 funding purposes, upon any provider, seller, or consumer with respect to the sale, purchase, use, or provision of prepaid wireless telecommunications service.

History of Section. P.L. 2010, ch. 23, art. 9, § 12; P.L. 2018, ch. 47, art. 7, § 10.

Chapter 22 Base Load Renewable Resource Facilities Electricity Purchase Act [Repealed.]

39-22-1 — 39-22-4. [Repealed.]

Repealed Sections.

This chapter (P.L. 1984, ch. 307, § 1), consisting of §§ 39-22-1 — 39-22-4 and concerning the base load renewable resource facilities electricity purchase act, was repealed by P.L. 1996, ch. 316, § 1, effective August 7, 1996.

Chapter 23 Adaptive Telephone Equipment Loan Program Committee

39-23-1. Committee — Composition.

There is hereby created within the department of human services a permanent committee to be known as the adaptive telephone equipment loan program committee. This committee shall advise on the program and shall consist of fifteen (15) members, one of whom shall be from the house of representatives, to be appointed by the speaker; one of whom shall be from the senate, to be appointed by the president of the senate; one of whom shall be a representative of the telephone company, to be appointed by its chief executive officer; one of whom shall be a representative of the public utilities commission, to be appointed by the chairperson of the public utilities commission; and eleven (11) of whom shall be appointed by the governor as follows: seven (7) consumers, including at least one from each of the following communities: the hard of hearing or deaf community, the speech-impaired community, and the neuromuscular-impaired community; one professional member who shall be an audiologist, physician, or speech pathologist, and three (3) members of the general public.

History of Section. P.L. 1985, ch. 48, § 2; P.L. 1993, ch. 115, § 2; P.L. 2001, ch. 180, § 83; P.L. 2004, ch. 378, § 1; P.L. 2004, ch. 504, § 1.

39-23-2. Duties.

The duties of the committee shall include but not be limited to advising on the implementation of the telecommunications device for the impaired distribution program authorized by § 39-1-42(a)(2) , and providing periodic review of activities, policies, regulations, procedures, programs, and operation of the program.

History of Section. P.L. 1985, ch. 48, § 2; P.L. 2004, ch. 378, § 1; P.L. 2004, ch. 504, § 1; P.L. 2020, ch. 79, art. 1, § 15.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

Cross References.

Adaptive telephone equipment loan program fund, § 40-1-9 .

39-23-3. Reports and recommendations.

The committee shall, from time to time, and at least annually, report to the general assembly on its findings and the results of its studies, and make such recommendations to the general assembly and propose such legislation or initiate such studies as it shall deem advisable.

History of Section. P.L. 1985, ch. 48, § 2.

39-23-4. Place of meeting.

The committee shall meet at such times and places as in the judgment of the committee will best serve the convenience of all parties in interest. The members of the committee shall receive no salary.

History of Section. P.L. 1985, ch. 48, § 2.

39-23-5. [Repealed.]

History of Section. P.L. 1990, ch. 135, § 1; Repealed by P.L. 2004, ch. 378, § 2, effective July 3, 2004; and by P.L. 2004, ch. 504, § 2, effective July 7, 2004.

Compiler’s Notes.

Former § 39-23-5 concerned confidentiality.

39-23-6. Terms of office and officers.

Of the number of members appointed by the governor originally under this chapter, one-third (1/3) shall be appointed for a term of one year; one-third (1/3) shall be appointed for a term of two (2) years; and one-third (1/3) shall be appointed for a term of three (3) years. Thereafter, vacancies created by expiration of terms shall be filled with appointments for terms of three (3) years. Members whose terms expire may be reappointed to succeed themselves. The committee shall elect from its own membership a chairperson, vice chairperson, and other officers as deemed necessary annually. The committee may appoint such personnel as may be necessary for the efficient performance of the duties prescribed by this chapter.

History of Section. P.L. 1993, ch. 115, § 3.

Chapter 24 Long-Range Energy Plans

39-24-1. [Repealed.]

History of Section. P.L. 1987, ch. 144, § 1; Repealed by P.L. 1996, ch. 316, § 1, effective August 7, 1996.

Compiler’s Notes.

Former § 39-24-1 concerned filing by electric companies.

39-24-2. Filing by gas companies.

Every gas company whose total annual sales in the preceding calendar year exceed five million cubic feet (5,000,000 cu. ft.) shall submit, every two (2) years, to the public utilities commission, a long-range energy plan for the five-year (5) period subsequent to the date the plan is submitted, and shall apprise the commission in the interim of any changes that substantially affect the plan. The public utilities commission shall by rule specify such information as it shall reasonably require, to include, but not be limited to, the company’s peak demand forecasts, annual sales in cubic feet, major proposed additions to plant, and an analysis of the cost and financing of any proposed additions to plant or purchases. The filing shall include all assumptions and methodologies used by the company in formulating the plan.

History of Section. P.L. 1987, ch. 144, § 1.

Chapter 25 Electric Transmission Siting and Regulatory Act

39-25-1. Short title.

This chapter shall be known as the electric transmission siting and regulatory act.

History of Section. P.L. 1992, ch. 439, § 1.

39-25-2. Statement of policy and purpose.

The general assembly finds and hereby declares the following:

  1. The citizens of the state whose homes are in close proximity to proposed high-voltage lines have expressed concern about the possible harmful effect of electromagnetic fields that emanate from the electrical utilities facilities;
  2. There have been a number of scientific studies that purport to suggest that the electromagnetic fields associated with electrical utility facilities may present a significant health risk;
  3. The issue of the adverse health effects of human exposure to electromagnetic radiation has been the subject of newspaper and scientific journal articles, and although to date no firm data exists indicating at what levels this radiation may pose certain health risks, scientific studies and preliminary evidence warrant an approach of prudent avoidance;
  4. While the general assembly recognizes that at present, research data neither provides a basis for asserting that magnetic fields pose a significant health risk nor does it allow one to categorically assert that there are no risks. Prudence, therefore, suggests caution in dealing with electromagnetic fields and public health issues until further research permits a more conclusive determination.

History of Section. P.L. 1992, ch. 439, § 1.

39-25-3. Regulations on construction of high-voltage lines.

The energy facility siting board established under § 42-98-5 is hereby authorized and directed to establish rules and regulations governing construction within the state of high-voltage transmission lines of sixty-nine (69) kV or greater.

History of Section. P.L. 1992, ch. 439, § 1.

Chapter 26 Renewable Energy Standard

39-26-1. Legislative findings.

The General Assembly finds that:

  1. The people and energy users of Rhode Island have an interest in having electricity supplied in the state come from a diversity of energy sources including renewable resources;
  2. Increased use of renewable energy may have the potential to lower and stabilize future energy costs;
  3. Increased use of renewable energy can reduce air pollutants, including carbon dioxide emissions, that adversely affect public health and contribute to global warming;
  4. Massachusetts, Connecticut, and other states have established renewable energy standard programs to encourage the development of renewable energy sources;
  5. It is in the interest of the people, in order to protect public health and the environment and to promote the general welfare, to establish a renewable energy standard program to increase levels of electrical energy supplied in the state from renewable resources.

History of Section. P.L. 2004, ch. 199, § 1; P.L. 2004, ch. 205, § 1.

Law Reviews.

Alyssa Lauren Lemire, Comment: Raising the Meter in Rhode Island: A Better Approach to Rhode Island’s Net Metering Laws, 25 Roger Williams U. L. Rev. 470 (2020).

39-26-2. Definitions.

When used in this chapter:

  1. “Alternative compliance payment” means a payment to the renewable energy development fund of fifty dollars ($50.00) per megawatt-hour of renewable energy obligation, in 2003 dollars, adjusted annually up or down by the consumer price index, which may be made in lieu of standard means of compliance with this statute.
  2. “Commission” means the Rhode Island public utilities commission.
  3. “Compliance year” means a calendar year beginning January 1 and ending December 31, for which an obligated entity must demonstrate that it has met the requirements of this statute.
  4. “Customer-sited generation facility” means a generation unit that is interconnected on the end-use customer’s side of the retail electricity meter in such a manner that it displaces all or part of the metered consumption of the end-use customer.
  5. “Electrical energy product” means an electrical energy offering, including, but not limited to, last-resort and standard-offer service, that can be distinguished by its generation attributes or other characteristics, and that is offered for sale by an obligated entity to end-use customers.
  6. “Eligible biomass fuel” means fuel sources including brush, stumps, lumber ends and trimmings, wood pallets, bark, wood chips, shavings, slash, and other clean wood that is not mixed with other solid wastes; agricultural waste, food, and vegetative material; energy crops; landfill methane; biogas; or neat biodiesel and other neat liquid fuels that are derived from such fuel sources.
  7. “Eligible renewable energy resource” means resources as defined in § 39-26-5 .
  8. “End-use customer” means a person or entity in Rhode Island that purchases electrical energy at retail from an obligated entity.
  9. “Existing renewable energy resources” means generation units using eligible renewable energy resources and first going into commercial operation before December 31, 1997.
  10. “Generation attributes” means the nonprice characteristics of the electrical energy output of a generation unit including, but not limited to, the unit’s fuel type, emissions, vintage, and policy eligibility.
  11. “Generation unit” means a facility that converts a fuel or an energy resource into electrical energy.
  12. “High-heat medical waste processing facility” means a facility  that:
    1. Generates electricity from the combustion, gasification, or pyrolysis of regulated medical waste;
    2. Generates electricity from the combustion of fuel derived from the gasification or pyrolysis of regulated medical waste; or
    3. Disposes of, processes, or treats regulated medical waste through combustion, gasification, pyrolysis, or any process that exposes waste to temperatures above four hundred degrees Fahrenheit (400ºF).
  13. “NE-GIS” means the generation information system operated by NEPOOL, its designee or successor entity, that includes a generation information database and certificate system, and that accounts for the generation attributes of electrical energy consumed within NEPOOL.
  14. “NE-GIS certificate” means an electronic record produced by the NE-GIS that identifies the relevant generation attributes of each megawatt-hour accounted for in the NE-GIS.
  15. “NEPOOL” means the New England Power Pool or its successor.
  16. “New renewable energy resources” means generation units using eligible renewable energy resources and first going into commercial operation after December 31, 1997; or the incremental output of generation units using eligible renewable energy resources that have demonstrably increased generation in excess of ten percent (10%) using eligible renewable energy resources through capital investments made after December 31, 1997; but in no case involve any new impoundment or diversion of water with an average salinity of twenty (20) parts per thousand or less.
  17. “Obligated entity” means a person or entity who or that sells electrical energy to end-use customers in Rhode Island, including, but not limited to: nonregulated power producers and electric utility distribution companies, as defined in § 39-1-2 , supplying standard-offer service, last-resort service, or any successor service to end-use customers, including Narragansett Electric, but not to include Block Island Power Company as described in § 39-26-7 or Pascoag Utility District.
  18. “Off-grid generation facility” means a generation unit that is not connected to a utility transmission or distribution system.
  19. “Renewable energy resource” means any one or more of the renewable energy resources described in § 39-26-5(a) .
  20. “Reserved certificate” means a NE-GIS certificate sold independent of a transaction involving electrical energy, pursuant to Rule 3.4 or a successor rule of the operating rules of the NE-GIS.
  21. “Reserved certificate account” means a specially designated account established by an obligated entity, pursuant to Rule 3.4 or a successor rule of the operating rules of the NE-GIS, for transfer and retirement of reserved certificates from the NE-GIS.
  22. “Self-generator” means an end-use customer in Rhode Island that displaces all or part of its retail electricity consumption, as metered by the distribution utility to which it interconnects, through the use of a customer-sited generation facility, and the ownership of any such facility shall not be considered an obligated entity as a result of any such ownership arrangement.
  23. “Small hydro facility” means a facility employing one or more hydroelectric turbine generators and with an aggregate capacity not exceeding thirty megawatts (30 MW). For purposes of this definition, “facility” shall be defined in a manner consistent with Title 18 of the Code of Federal Regulations, section 292.204; provided, however, that the size of the facility is limited to thirty megawatts (30 MW), rather than eighty megawatts (80 MW).

History of Section. P.L. 2004, ch. 199, § 1; P.L. 2004, ch. 205, § 1; P.L. 2008, ch. 348, § 1; P.L. 2008, ch. 356, § 1; P.L. 2009, ch. 91, § 1; P.L. 2009, ch. 111, § 1; P.L. 2011, ch. 134, § 1; P.L. 2011, ch. 147, § 1; P.L. 2020, ch. 79, art. 1, § 16; P.L. 2021, ch. 334, § 1, effective July 9, 2021.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

Law Reviews.

Alyssa Lauren Lemire, Comment: Raising the Meter in Rhode Island: A Better Approach to Rhode Island’s Net Metering Laws, 25 Roger Williams U. L. Rev. 470 (2020).

39-26-3. Purposes.

The purposes of this chapter are to define renewable energy resources and to facilitate the development of new renewable energy resources to supply electricity to customers in Rhode Island with goals of stabilizing long-term energy prices, enhancing environmental quality, and creating jobs in Rhode Island in the renewable energy sector.

History of Section. P.L. 2004, ch. 199, § 1; P.L. 2004, ch. 205, § 1; P.L. 2011, ch. 134, § 1; P.L. 2011, ch. 147, § 1.

39-26-4. Renewable energy standard.

  1. Starting in compliance year 2007, all obligated entities shall obtain at least three percent (3%) of the electricity they sell at retail to Rhode Island end-use customers, adjusted for electric line losses, from eligible renewable energy resources, escalating, according to the following schedule:
    1. At least three percent (3%) of retail electricity sales in compliance year 2007;
    2. An additional one-half of one percent (0.5%) of retail electricity sales in each of the following compliance years 2008, 2009, 2010;
    3. An additional one percent (1%) of retail electricity sales in each of the following compliance years 2011, 2012, 2013, 2014, provided that the commission has determined the adequacy, or potential adequacy, of renewable energy supplies to meet these percentage requirements;
    4. An additional one and one-half percent (1.5%) of retail electricity sales in each of the following compliance years 2015, 2016, 2017, 2018, and 2019, and each year thereafter until 2035, provided that the commission has determined the adequacy, pursuant to § 39-26-6 , of renewable energy supplies to meet these percentage requirements.
    5. [Deleted by P.L. 2016, ch. 144, § 1 and P.L. 2016, ch. 155, § 1.]
  2. For each obligated entity and in each compliance year, the amount of retail electricity sales used to meet obligations under this statute that are derived from existing renewable energy resources shall not exceed two percent (2%) of total retail electricity sales.
  3. The minimum renewable energy percentages set forth in subsection (a) shall be met for each electrical energy product offered to end-use customers, in a manner that ensures that the amount of renewable energy of end-use customers voluntarily purchasing renewable energy is not counted toward meeting such percentages.
  4. To the extent consistent with the requirements of this chapter, compliance with the renewable energy standard may be demonstrated through procurement of NE-GIS certificates relating to generating units certified by the commission as using eligible renewable energy sources, as evidenced by reports issued by the NE-GIS administrator. Procurement of NE-GIS certificates from off-grid and customer-sited generation facilities, if located in Rhode Island and verified by the commission as eligible renewable energy resources, may also be used to demonstrate compliance. With the exception of contracts for generation supply entered into prior to 2002, initial title to NE-GIS certificates from off-grid and customer-sited generation facilities and from all other eligible renewable energy resources, shall accrue to the owner of such a generation facility, unless such title has been explicitly deemed transferred pursuant to contract or regulatory order.
  5. In lieu of providing NE-GIS certificates pursuant to subsection (d) of this section, an obligated entity may also discharge all or any portion of its compliance obligations by making an alternative compliance payment to the renewable energy development fund established pursuant to § 39-26-7 .

History of Section. P.L. 2004, ch. 199, § 1; P.L. 2004, ch. 205, § 1; P.L. 2016, ch. 144, § 1; P.L. 2016, ch. 155, § 1.

Law Reviews.

Alyssa Lauren Lemire, Comment: Raising the Meter in Rhode Island: A Better Approach to Rhode Island’s Net Metering Laws, 25 Roger Williams U. L. Rev. 470 (2020).

39-26-5. Renewable energy resources.

  1. Renewable energy resources are:
    1. Direct solar radiation;
    2. The wind;
    3. Movement or the latent heat of the ocean;
    4. The heat of the earth;
    5. Small hydro facilities;
    6. Biomass facilities using eligible biomass fuels and maintaining compliance with current air permits; eligible biomass fuels may be co-fired with fossil fuels, provided that only the renewable energy fraction of production from multi-fuel facilities shall be considered eligible;
    7. Fuel cells using the renewable resources referenced above in this section; and
    8. Waste-to-energy combustion of any sort or manner, including, without limitation, high-heat medical waste processing facilities, shall in no instance be considered eligible, except for fuels identified in § 39-26-2(6) .
  2. For the purposes of the regulations promulgated under this chapter, eligible renewable energy resources are generation units in the NEPOOL control area using renewable energy resources as defined in this section.
  3. A generation unit located in an adjacent control area outside of the NEPOOL may qualify as an eligible renewable energy resource, but the associated generation attributes shall be applied to the renewable energy standard only to the extent that the energy produced by the generation unit is actually delivered into NEPOOL for consumption by New England customers. The delivery of the energy from the generation unit into NEPOOL must be generated by:
    1. A unit-specific bilateral contract for the sale and delivery of such energy into NEPOOL; and
    2. Confirmation from ISO-New England that the renewable energy was actually settled in the NEPOOL system; and
    3. Confirmation through the North American Reliability Council tagging system that the import of the energy into NEPOOL actually occurred; or
    4. Any such other requirements as the commission deems appropriate.
  4. NE-GIS certificates associated with energy production from off-grid generation and customer-sited generation facilities certified by the commission as eligible renewable energy resources may also be used to demonstrate compliance, provided that the facilities are physically located in Rhode Island.

History of Section. P.L. 2004, ch. 199, § 1; P.L. 2004, ch. 205, § 1; P.L. 2011, ch. 134, § 1; P.L. 2011, ch. 147, § 1; P.L. 2021, ch. 334, § 1, effective July 9, 2021.

39-26-6. Duties of the commission.

  1. The commission shall:
    1. Develop and adopt regulations on or before December 31, 2005, for implementing a renewable energy standard, which regulations shall include, but be limited to, provisions for:
      1. Verifying the eligibility of renewable energy generators and the production of energy from such generators, including requirements to notify the commission in the event of a change in a generator’s eligibility status.
      2. Standards for contracts and procurement plans for renewable energy resources to achieve the purposes of this chapter.
      3. Flexibility mechanisms for the purposes of easing compliance burdens; facilitating bringing new renewable resources on-line; and avoiding and/or mitigating conflicts with state-level source disclosure requirements and green marketing claims throughout the region; which flexibility mechanisms shall allow obligated entities to: (A) Demonstrate compliance over a compliance year; (B) Bank excess compliance for two (2) subsequent compliance years, capped at thirty percent (30%) of the current year’s obligation; and (C) Allow renewable energy generated during 2006 to be banked by an obligated entity as early compliance, usable towards meeting an obligated entity’s 2007 requirement. Generation used for early compliance must result in the retirement of NE-GIS certificates in a reserved certificate account designated for such purposes.
      4. Annual compliance filings to be made by all obligated entities within one month after NE-GIS reports are available for the fourth (4th) quarter of each calendar year. All electric-utility-distribution companies shall cooperate with the commission in providing data necessary to assess the magnitude of obligation and verify the compliance of all obligated entities.
    2. Authorize rate recovery by electric-utility-distribution companies of all prudent incremental costs arising from the implementation of this chapter, including, without limitation: the purchase of NE-GIS certificates; the payment of alternative compliance payments; required payments to support the NE-GIS; assessments made pursuant to § 39-26-7(c) ; and the incremental costs of complying with energy source disclosure requirements.
    3. Certify eligible renewable energy resources by issuing statements of qualification within ninety (90) days of application. The commission shall provide prospective reviews for applicants seeking to determine whether a facility would be eligible.
    4. Determine, on or before January 1, 2019, and every fifth year thereafter, the adequacy of renewable energy supplies to meet the increase in the percentage requirement of energy from renewable energy resources to go into effect the following year. In the event that the commission determines an inadequacy of supplies for scheduled percentage increases, the commission shall delay all or a part of the implementation of the scheduled percentage increase, until such time that the commission determines that the supplies are adequate to achieve the purposes of this chapter.
    5. Establish sanctions for those obligated entities that, after investigation, have been found to fail to reasonably comply with the commission’s regulations. No sanction or penalty shall relieve or diminish an obligated entity from liability for fulfilling any shortfall in its compliance obligation; provided, however, that no sanction shall be imposed if compliance is achieved through alternative compliance payments. The commission may suspend or revoke the certification of generation units, certified in accordance with subsection (a)(3) above, that are found to provide false information or that fail to notify the commission in the event of a change in eligibility status or otherwise comply with its rules. Financial penalties resulting from sanctions from obligated entities shall not be recoverable in rates.
    6. Report, by February 15, 2006, and by February 15 each year thereafter, to the governor, the speaker of the house, and the president of the senate on the status of the implementation of the renewable energy standards in Rhode Island and other states, and which report shall include in 2009, and each year thereafter, the level of use of renewable energy certificates by eligible renewable energy resources and the portion of renewable energy standards met through alternative compliance payments, and the amount of rate increases authorized pursuant to subsection (a)(2).
  2. Consistent with the public policy objective of developing renewable generation as an option in Rhode Island, and subject to the review and approval of the commission, the electric distribution company is authorized to propose and implement pilot programs to own and operate no more than fifteen megawatts (15 MW) of renewable-generation demonstration projects in Rhode Island and may include the costs and benefits in rates to distribution customers. At least two (2) demonstration projects shall include renewable generation installed at, or in the vicinity of nonprofit, affordable-housing projects where energy savings benefits are provided to reduce electric bills of the customers at the nonprofit, affordable-housing projects. Any renewable-generation proposals shall be subject to the review and approval of the commission. The commission shall annually make an adjustment to the minimum amounts required under the renewable energy standard under this chapter in an amount equal to the kilowatt hours generated by such units owned by the electric distribution company. The electric and gas distribution company shall also be authorized to propose and implement smart-metering and smart-grid demonstration projects in Rhode Island, subject to the review and approval of the commission, in order to determine the effectiveness of such new technologies for reducing and managing energy consumption, and may include the costs of such demonstration projects in distribution rates to electric customers to the extent the project pertains to electricity usage and in distribution rates to gas customers to the extent the project pertains to gas usage.

History of Section. P.L. 2004, ch. 199, § 1; P.L. 2004, ch. 205, § 1; P.L. 2007, ch. 173, § 1; P.L. 2008, ch. 348, § 1; P.L. 2008, ch. 356, § 1; P.L. 2009, ch. 91, § 1; P.L. 2009, ch. 111, § 1; P.L. 2011, ch. 134, § 1; P.L. 2011, ch. 147, § 1; P.L. 2016, ch. 144, § 1; P.L. 2016, ch. 155, § 1.

Law Reviews.

Alyssa Lauren Lemire, Comment: Raising the Meter in Rhode Island: A Better Approach to Rhode Island’s Net Metering Laws, 25 Roger Williams U. L. Rev. 470 (2020).

39-26-7. Renewable energy development fund.

  1. There is hereby authorized and created within the Rhode Island commerce corporation a renewable energy development fund for the purpose of increasing the supply of NE-GIS certificates available for compliance in future years by obligated entities with renewable energy standard requirements, as established in this chapter. The fund shall be located at the Rhode Island commerce corporation. The Rhode Island commerce corporation shall administer the fund and adopt plans and guidelines for the management and use of the fund in coordination with the office of energy resources and the Rhode Island infrastructure bank.
  2. The Rhode Island commerce corporation shall enter into agreements with obligated entities to accept alternative compliance payments, consistent with rules of the commission and the purposes set forth in this section; and alternative compliance payments received pursuant to this section shall be trust funds to be held and applied solely for the purposes set forth in this section.
  3. The uses of the fund shall include but not be limited to:
    1. Stimulating investment in renewable energy development by entering into agreements, including multiyear agreements, for renewable energy certificates;
    2. Establishing and maintaining a residential renewable energy program using eligible technologies in accordance with § 39-26-5 ;
    3. Providing technical and financial assistance to municipalities for interconnection and feasibility studies, and/or the installation of renewable energy projects;
    4. Implementing and supporting commercial and residential property assessed clean-energy projects;
    5. Issuing assurances and/or guarantees to support the acquisition of renewable energy certificates and/or the development of new renewable energy sources for Rhode Island;
    6. Establishing escrows, reserves, and/or acquiring insurance for the obligations of the fund;
    7. Paying administrative costs of the fund incurred by the Rhode Island commerce corporation, the Rhode Island infrastructure bank, and the office of energy resources, not to exceed ten percent (10%) of the income of the fund, including, but not limited to, alternative compliance payments. All funds transferred from the Rhode Island commerce corporation to support the office of energy resources’ administrative costs shall be deposited as restricted receipts.
  4. All applications received for the use of the fund shall be reviewed by the Rhode Island commerce corporation in consultation with the office of energy resources and the Rhode Island infrastructure bank.
  5. NE-GIS certificates acquired through the fund may be conveyed to obligated entities or may be credited against the renewable energy standard for the year of the certificate provided that the commission assesses the cost of the certificates to the obligated entity, or entities, benefiting from the credit against the renewable energy standard, which assessment shall be reduced by previously made alternative compliance payments and shall be paid to the fund.

History of Section. P.L. 2004, ch. 199, § 1; P.L. 2004, ch. 205, § 1; P.L. 2006, ch. 236, § 8; P.L. 2006, ch. 237, § 8; P.L. 2008, ch. 100, art. 28, § 7; P.L. 2008, ch. 228, § 4; P.L. 2008, ch. 422, § 4; P.L. 2012, ch. 241, art. 4, § 15; P.L. 2015, ch. 141, art. 14, § 7.

39-26-8. Interaction with other policies.

  1. Rhode Island has established a system-benefits charge (SBC), a portion of which is dedicated to supporting renewable energy, administered in accordance with the provisions of § 39-2-1.2(b) and (c); other states have similar policies. The office of energy resources is hereby directed to collaborate with the division of public utilities and carriers, the trustees of the renewable energy development fund, the distribution company with other interests and parties, as appropriate, in maximizing the combined impact and efficiency of the renewable energy program established by § 39-2-1.2(b) and (c) and the renewable energy standard.
  2. It is the intent of this chapter that generation attributes and NE-GIS certificates applied towards Rhode Island renewable energy standard compliance may not be used towards compliance with state renewable energy obligations relating to an obligated entity’s load in other states.

History of Section. P.L. 2004, ch. 199, § 1; P.L. 2004, ch. 205, § 1; P.L. 2006, ch. 236, § 8; P.L. 2006, ch. 237, § 8.

Compiler’s Notes.

There is no longer a subsection (c) in § 39-2-1.2 , as referred to in this section. It appears that former (c) was amended and redesignated as subsection (e) of that section in 2008 and redesignated as subsection (d) of that section in 2012.

39-26-9. Energy source disclosure requirements.

  1. The commission shall, by March 31, 2005, establish and enforce right-to-know regulations requiring any obligated entity to distribute energy source disclosures to all customers of each electrical energy product offered.
  2. The energy source disclosure shall indicate what sources of energy were used to generate electricity for each electrical energy product, expressed as a percentage of the total amount of energy used towards each electrical energy product. The energy source disclosure shall show the percentages of energy obtained from each of the eligible renewable energy resources, as well as the percentage of energy obtained from nuclear plants, natural gas, oil (which may include any fossil fuel), hydroelectric plants that are not eligible renewable energy resources, coal, and any other sources that the commission may require to be included. The energy source disclosure shall also indicate the emissions created as a result of generating the electricity.
  3. Energy source disclosures shall be distributed to consumers on a quarterly basis. The obligated entities shall be allowed to recover in rates all incremental costs associated with preparation and distribution of the disclosure label.
  4. The commission shall allow for or require the use of NE-GIS certificates for the calculation of the energy source disclosure.
  5. The energy source disclosure presented to any particular end-use customer shall take into consideration and account for voluntary purchases of generation attributes or related products, including purchases made by the end-use customer from providers other than the obligated entity, even if the end-use customer is billed by the obligated entity and also served by that obligated entity’s electrical energy product.

History of Section. P.L. 2004, ch. 199, § 1; P.L. 2004, ch. 205, § 1.

39-26-10. Severability and construction.

If any provision of this chapter or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this chapter that can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable. The provisions of this chapter shall be liberally construed to give effect to the purposes thereof.

History of Section. P.L. 2004, ch. 199, § 1; P.L. 2004, ch. 205, § 1.

Chapter 26.1 Long-Term Contracting Standard for Renewable Energy

39-26.1-1. Purpose.

The purpose of this chapter is to encourage and facilitate the creation of commercially reasonable long-term contracts between electric distribution companies and developers or sponsors of newly developed renewable energy resources with the goals of stabilizing long-term energy prices, enhancing environmental quality, creating jobs in Rhode Island in the renewable energy sector, and facilitating the financing of renewable energy generation within the jurisdictional boundaries of the state or adjacent state or federal waters or providing direct economic benefit to the state.

History of Section. P.L. 2009, ch. 51, § 1; P.L. 2009, ch. 53, § 1.

39-26.1-2. Definitions.

Terms not defined in this chapter shall have the same meaning as contained in chapter 26 of this title. When used in this chapter:

  1. “Commercially reasonable” means terms and pricing that are reasonably consistent with what an experienced power market analyst would expect to see in transactions involving newly developed renewable energy resources. Commercially reasonable shall include having a credible project operation date, as determined by the commission, but a project need not have completed the requisite permitting process to be considered commercially reasonable. If there is a dispute about whether any terms or pricing are commercially reasonable, the commission shall make the final determination after evidentiary hearings.
  2. “Commission” means the Rhode Island public utilities commission.
  3. “Electric distribution company” means a company defined in § 39-1-2 , supplying standard-offer service, last-resort service, or any successor service to end-use customers, but not including the Block Island Power Company or the Pascoag Utility District.
  4. “Eligible renewable energy resource” means resources as defined in § 39-26-5 and any references therein.
  5. “Long-term contract” means a contract of not less than ten (10) years.
  6. “Minimum long-term contract capacity” means ninety megawatts (90 MW) of which three megawatts (3 MW) must be solar or photovoltaic projects located in the state of Rhode Island. In determining whether the minimum long-term contract capacity has been reached, the capacity under contract shall be adjusted by the capacity factor of each renewable generator as determined by the ISO-NE rules, as they may change from time to time. By way of example, a contract with a one hundred (100) megawatt facility with a thirty percent (30%) capacity factor would be counted as providing thirty megawatts (30 MW) to the minimum long-term contract capacity requirement.
  7. “Newly developed renewable energy resources” means electrical generation units that use exclusively an eligible renewable energy resource, and that have neither begun operation, nor have the developers of the units implemented investment or lending agreements necessary to finance the construction of the unit; provided, however, that any projects using eligible renewable energy resources and located within the state of Rhode Island that obtain project financing on or after January 1, 2009, shall qualify as newly developed renewable energy resources for purposes of the first solicitation under this chapter.

History of Section. P.L. 2009, ch. 51, § 1; P.L. 2009, ch. 53, § 1.

39-26.1-3. Long-term contract standard.

  1. Beginning on or before July 1, 2010, each electric distribution company shall be required to annually solicit proposals from renewable energy developers and, provided commercially reasonable proposals have been received, enter into long-term contracts with terms of up to fifteen (15) years for the purchase of capacity, energy, and attributes from newly developed renewable energy resources. Subject to commission approval, the electric distribution company may enter into contracts for term lengths longer than fifteen (15) years. Notwithstanding any other provisions of this chapter, on or before August 15, 2009, the electric distribution company shall solicit proposals for one newly developed renewable energy resources project as required in § 39-26.1-7 . Proposals for the sale of output from an offshore-wind project received under the provisions of this section shall be diligently and fully considered without prejudice, regardless of the status of any proceedings under § 39-26.1-7 or § 39-26.1-8 .
  2. The timetable and method for solicitation and execution of such contracts shall be proposed by the electric distribution company, and shall be subject to review and approval by the commission prior to issuance by the company. The electric distribution company shall, subject to review and approval of the commission, select a reasonable method of soliciting proposals from renewable energy developers, which shall include, at a minimum, an annual public solicitation, but may also include individual negotiations. The solicitation process shall permit a reasonable amount of negotiating discretion for the parties to engage in commercially reasonable, arms-length negotiations over final contract terms. Each long-term contract entered into pursuant to this section shall contain a condition that it shall not be effective without commission review and approval. The electric distribution company shall file such contract, along with a justification for its decision, within a reasonable time after it has executed the contract following a solicitation or negotiation. The commission shall hold public hearings to review the contract within forty-five (45) days of the filing and issue a written order approving or rejecting the contract within sixty (60) days of the filing; in rejecting a contract, the commission may advise the parties of the reason for the contract being rejected and direct the parties to attempt to address the reasons for rejection in a revised contract within a specified period not to exceed ninety (90) days. The commission shall approve the contract if it determines that: (1) The contract is commercially reasonable; (2) The requirements for the annual solicitation have been met; and (3) The contract is consistent with the purposes of this chapter. A report on each solicitation shall be filed with the commission each year within a reasonable time after decisions are made by the electric distribution company regarding the solicitation results, even if no contracts are executed following the solicitation.
    1. No electric distribution company shall be obligated to enter into long-term contracts for newly developed renewable energy resources on terms that the electric distribution company reasonably believes to be commercially unreasonable; provided, however, if there is a dispute about whether these terms are commercially unreasonable, the commission shall make the final determination after an evidentiary hearing. The electric distribution company shall not be obligated to enter into long-term contracts pursuant to this section that would, in the aggregate, exceed the minimum long-term contract capacity, but may do so voluntarily subject to commission approval. As long as the electric distribution company has entered into long-term contracts in compliance with this section, the electric distribution company shall not be required by regulation or order to enter into power-purchase contracts with renewable-generation projects for power, renewable energy certificates, or any other attributes with terms of more than three (3) years in meeting its applicable, annual-renewable-portfolio standard requirements set forth in § 39-26-4 or pursuant to any other provision of the law.
    2. Except as provided in §§ 39-26.1-7 and 39-26.1-8 , an electric distribution company shall not be required to enter into long-term contracts for newly developed renewable energy resources that exceed the following five (5) year phased schedule: By December 30, 2010: Twenty-five percent (25%) of the minimum long-term contract capacity; By December 30, 2011: Fifty percent (50%) of the minimum long-term contract capacity; By December 30, 2012: Seventy-five percent (75%) of the minimum long-term contract capacity; After December 30, 2013: One hundred percent (100%) of the minimum long-term contract capacity subject to subsection (f) of this section.
  3. Compliance with the long-term contract standard shall be demonstrated through procurement pursuant to the provisions of a long-term contract of energy, capacity, and attributes reflected in NE-GIS certificates relating to generating units certified by the commission as using newly developed renewable energy resources, as evidenced by reports issued by the NE-GIS administrator and the terms of the contract; provided, however, that the NE-GIS certificates were procured pursuant to the provisions of a long-term contract. The electric distribution company also may purchase other attributes from the generator as part of the long-term contract.
  4. After the adoption of the rules and regulations promulgated by the commission pursuant to this chapter, an electric distribution company may, at its sole election, immediately, and from time to time, procure additional, commercially reasonable long-term contracts for newly developed renewable energy resources on an earlier timetable or above the minimum long-term contract capacity, subject to commission approval.
  5. At least once per year beginning in 2014, the electric distribution company shall conduct solicitations until one hundred percent (100%) of the minimum long-term contract capacity is met; provided, however, that no contracts shall be awarded unless the pricing under such contract(s) is below the forecasted market price of energy and renewable energy certificates over the term of the proposed contract, using industry standard forecasting methodologies as have been used to evaluate pricing in the past solicitation processes reviewed by the commission under this section. In such solicitations, the electric distribution company may elect not to acquire capacity, but shall acquire all environmental attributes and energy.

History of Section. P.L. 2009, ch. 51, § 1; P.L. 2009, ch. 53, § 1; P.L. 2013, ch. 167, § 1; P.L. 2013, ch. 202, § 1; P.L. 2014, ch. 61, § 1; P.L. 2014, ch. 63, § 1; P.L. 2014, ch. 200, § 2; P.L. 2014, ch. 216, § 2.

39-26.1-4. Financial remuneration and incentives.

In order to achieve the purposes of this chapter, electric distribution companies shall be entitled to financial remuneration and incentives for long-term contracts for newly developed renewable energy resources, which are over and above the base rate revenue requirement established in its cost of service for distribution ratemaking. Such remuneration and incentives shall compensate the electric distribution company for accepting the financial obligation of the long-term contracts. The financial remuneration and incentives described in this section shall apply only to long-term contracts for newly developed renewable energy resources. The financial remuneration and incentives shall be in the form of annual compensation, equal to two and three quarters percent (2.75%) of the actual annual payments made under the contracts for those projects that are commercially operating.

History of Section. P.L. 2009, ch. 51, § 1; P.L. 2009, ch. 53, § 1.

39-26.1-5. Commission approvals and regulations.

  1. Electric distribution companies shall submit to the commission for review and approval all long-term contracts for newly developed renewable energy resources proposed to be entered into in accordance with this chapter.
  2. Unless the commission approves otherwise, all energy and capacity purchased by an electric distribution company pursuant to this chapter shall be immediately sold by the electric distribution company into the wholesale spot market; provided, however, that all such sales shall be made through arms-length transactions.
  3. Unless the commission approves otherwise, any attributes including NE-GIS certificates purchased by an electric distribution company pursuant to this chapter shall be sold through a competitive bidding process in a commercially reasonable manner.
  4. Notwithstanding any term or provision to the contrary contained in subsection (b) or (c) hereof, subject to commission approval, electric distribution companies shall be permitted, but shall not be required: (1) To use the energy, capacity, and other attributes purchased for resale to customers; and/or (2) To use the NE-GIS certificates for purposes of meeting the obligations set forth in chapter 26 of this title; provided, however, that the commission finds that such sales would not have a detrimental impact on energy markets, on the market for NE-GIS certificates, and is otherwise in the interest of utility customers.
  5. The commission shall promulgate regulations by April 1, 2010, that shall, as a condition of contract approval, require all approved projects, regardless of their location, to provide other direct economic benefits to Rhode Island, such as job creation, increased property tax revenues, or other similar revenues, deemed substantial by the commission.
  6. The electric distribution company shall file tariffs with the commission for commission review and approval that net the cost of payments made to projects under the long-term contracts against the proceeds obtained from the sale of energy, capacity, RECs, or other attributes. The difference shall be credited or charged to all distribution customers through a uniform fully reconciling annual factor in distribution rates, subject to review and approval of the commission. The reconciliation shall be designed so that customers are credited with any net savings resulting from the long-term contracts and the electric distribution company recovers all costs incurred under such contracts, as well as, recovery of the financial remuneration and incentives specified in § 39-26.1-4 .

History of Section. P.L. 2009, ch. 51, § 1; P.L. 2009, ch. 53, § 1.

39-26.1-6. Interaction with other laws.

The long-term contract standard set forth in this chapter shall be separate and distinct from the renewable energy standard set forth in chapter 26 of this title.

History of Section. P.L. 2009, ch. 51, § 1; P.L. 2009, ch. 53, § 1.

39-26.1-7. Town of New Shoreham project.

  1. The general assembly finds it is in the public interest for the state to facilitate the construction of a small-scale offshore wind demonstration project off the coast of Block Island, including an undersea transmission cable that interconnects Block Island to the mainland in order to: position the state to take advantage of the economic development benefits of the emerging offshore wind industry; promote the development of renewable energy sources that increase the nation’s energy independence from foreign sources of fossil fuels; reduce the adverse environmental and health impacts of traditional fossil fuel energy sources; and provide the town of New Shoreham with an electrical connection to the mainland. To effectuate these goals, and notwithstanding any other provisions of the general or public laws to the contrary, the town of New Shoreham project, its associated power purchase agreement, transmission arrangements, and related costs are authorized pursuant to the process and standards contained in this section. The Narragansett Electric Company is hereby authorized to enter into an amended power purchase agreement with the developer of offshore wind for the purchase of energy, capacity, and any other environmental and market attributes, on terms that are consistent with the power purchase agreement that was filed with the commission on December 9, 2009, in docket 4111, and amendments changing dates and deadlines, provided that the pricing terms of such agreement are amended as more fully described in subsection (e) of this section, in addition to other amendments that are made to take into account the provisions of this section as amended since the filing of the agreement in docket 4111. Any amendments shall ensure that the pricing can only be lower, and never exceed, the original pricing included in the power purchase agreement that was reviewed in docket 4111. The demonstration project subject to the amended power purchase agreement shall include up to (but not exceeding) eight (8) wind turbines with aggregate nameplate capacity of no more than thirty megawatts (30 MW), even if the actual capacity factor of the project results in the project technically exceeding ten megawatts (10 MW).
  2. The amended power purchase agreement shall be filed with the public utilities commission. Upon the filing of the amended power purchase agreement, the commission shall open a new docket. The commission shall allow the parties to docket 4111 to become parties in the new docket who may file testimony within fifteen (15) days of the filing of the amended agreement. The commission shall allow other interventions on an expedited basis, provided they comply with the commission standards for intervention. The developer shall provide funding for the economic development corporation to hire an expert experienced in power markets, renewable energy project financing, and power contracts who shall provide testimony regarding the terms and conditions of the power purchase agreement to assist the commission in its review, provided that the developer shall be precluded from influencing the choice of expert, which shall be in the sole discretion of the economic development corporation. This testimony shall be filed within twenty (20) days after the filing of the amended power purchase agreement. The parties shall have the right to respond to the testimony of this expert through oral examination at the evidentiary hearings. The commission shall hold one public comment hearing within five (5) days after the filing of the expert testimony. Evidentiary hearings shall commence no later than thirty (30) days from the filing of the amended power purchase agreement.
  3. The commission shall review the amended power purchase agreement, taking into account the state’s policy intention to facilitate the development of a small offshore wind project in Rhode Island waters, while, at the same time, interconnecting Block Island to the mainland. The commission shall review the amended power purchase agreement and shall approve it if:
    1. The amended agreement contains terms and conditions that are commercially reasonable;
    2. The amended agreement contains provisions that provide for a decrease in pricing if savings can be achieved in the actual cost of the project pursuant to subsection (e) of this section;
    3. The amended agreement is likely to provide economic development benefits, including: facilitating new and existing business expansion and the creation of new renewable energy jobs; the further development of Quonset Business Park; and, increasing the training and preparedness of the Rhode Island workforce to support renewable energy projects; and
    4. The amended power purchase agreement is likely to provide environmental benefits, including the reduction of carbon emissions. An advisory opinion on the findings of economic benefit set forth in subsection (c)(3) shall be provided by the Rhode Island economic development corporation and an advisory opinion on the environmental benefits set forth in subsection (c)(4) shall be filed by the Rhode Island department of environmental management. The advisory opinions shall be filed with the commission within twenty (20) days of the filing of the amended power purchase agreement. The commission shall give substantial deference to the factual and policy conclusions set forth in the advisory opinions in making the required findings. Notwithstanding any other provisions of the general laws to the contrary, for the purposes of this section, “commercially reasonable” shall mean terms and pricing that are reasonably consistent with what an experienced power market analyst would expect to see for a project of a similar size, technology and location, and meeting the policy goals in subsection (a).
  4. The commission shall issue a written decision to accept or reject the amended power purchase agreement, without conditions, no later than forty-five (45) days from the filing of the amended power purchase agreement, without delay or extension of the timeframes contained in this section. Any review of the commission’s decision shall be according to chapter 5 of this title, and the supreme court shall advance any proceeding under this section so that the matter is afforded precedence on the calendar and shall be heard and determined with as little delay as possible. The provisions of § 39-26.1-4 and the provisions of subsections (b), (c), (d), and (f) of § 39-26.1-5 shall apply, and all costs incurred in the negotiation, administration, enforcement, transmission engineering associated with the design of the cable, and implementation of the project and agreement shall be recovered annually by the electric distribution company in electric distribution rates. The pricing under the agreement shall not have any precedential effect for purposes of determining whether other long-term contracts entered into pursuant to this chapter are commercially reasonable.
  5. Cap and lower price.  (i) The amended power purchase agreement subject to subsection (a) of this section shall provide for terms that shall decrease the pricing if savings can be achieved in the actual cost of the project, with all realized savings allocated to the benefit of ratepayers. (ii) The amended power purchase agreement shall also provide that the initial fixed price contained in the signed power purchase agreement submitted in docket 4111 shall be the maximum initial price, and any realized savings shall reduce such price. After making any such reduction to the initial price based on realized savings, the price for each year of the amended power purchase agreement shall be fixed by the terms of said agreement. (iii) The amended power purchase agreement shall require that the costs of the project shall be certified by the developer. An independent third party acceptable to the division of public utilities and carriers shall, within thirty (30) days of this certification by the developer, verify the accuracy of such costs at the completion of the construction of the project. The reasonable costs of this verification shall be paid for by the developer. Upon receipt of third-party verification, the division shall notify the Narragansett Electric Company of the final costs. The public utilities commission shall reduce the expense to ratepayers consistent with a verified reduction in the project costs.
  6. The project shall include a transmission cable between the town of New Shoreham and the mainland of the state. The electric distribution company, at its option, may elect to own, operate, or otherwise participate in such transmission cable project. The electric distribution company, however, has the option to decline to own, operate, or otherwise participate in the transmission cable project. The electric distribution company may elect to purchase the transmission cable and related facilities from the developer or an affiliate of the developer, pursuant to the terms of a transmission facility’s purchase agreement negotiated between the electric distribution company and the developer or its affiliate, an unexecuted copy of which shall be provided to the division of public utilities and carriers for the division’s consent to execution. The division shall have twenty (20) days to review the agreement. If the division independently determines that the terms and pricing of the agreement are reasonable, taking into account the intention of the legislature to advance the project as a policy-making matter, the division shall provide its written consent to the execution of the transmission facilities purchase agreement. Once written consent is provided, the electric distribution company and its transmission affiliate are authorized to make a filing with the Federal Energy Regulatory Commission to put into effect transmission rates to recover all of the costs associated with the purchase of the transmission cable and related facilities and the annual operation and maintenance. The revenue requirement for the annual cable costs shall be calculated in the same manner that the revenue requirement is calculated for other transmission facilities in Rhode Island for local network service under the jurisdiction of the Federal Energy Regulatory Commission. The division shall be authorized to represent the state of Rhode Island in those proceedings before the Federal Energy Regulatory Commission, including the authority to enter into any settlement agreements on behalf of the state to implement the intention of this section. The division shall support transmission rates and conditions that allow for the costs related to the transmission cable and related facilities to be charged in transmission rates in a manner that socializes the costs throughout Rhode Island. Should the electric distribution company own, operate, and maintain the cable, the annual costs incurred by the electric distribution company, directly or through transmission charges, shall be recovered annually through a fully reconciling rate adjustment from customers of the electric distribution company and/or from the Block Island Power Company or its successor, subject to any federal approvals that may be required by law. The allocation of the costs related to the transmission cable through transmission rates or otherwise shall be structured so that the estimated impact on the typical residential customer bill for transmission costs for customers in the town of New Shoreham shall be higher than the estimated impact on the typical residential customer bill for customers on the mainland of the electric distribution company. This higher charge for the customers in the town of New Shoreham shall be developed by allocating the actual cable costs based on the annual peak demands of the Block Island Power Company and the electric distribution company, and these resultant costs recovered in the per-KWh charges of each company. In any event, the difference in the individual charge per KWh or per customer/month shall not exceed the ratio of average demand to peak demand for Block Island Power Company, relative to the electric distribution company, currently at 1.8 to 1.0 respectively. To the extent that any state tariffs or rates must be put into effect in order to implement the intention of this section, the public utilities commission shall accept filings of the same and shall approve them.
  7. Any charges incurred by the Block Island Power Company, or its successor pursuant to this section, or other costs incurred by the Block Island Power Company in implementing this section, including the cost of participation in regulatory proceedings in the state or at the Federal Energy Regulatory Commission shall be recovered annually in rates through a fully reconciling rate adjustment, subject to approval by the commission. If the electric distribution company owns, operates, or otherwise participates in the transmission cable project, pursuant to subsection (f) of this section, the provisions of § 39-26.1-4 shall not apply to the cable cost portion of the town of New Shoreham project.
  8. Any contract entered into pursuant to this section shall count as part of the minimum long-term contract capacity.
  9. If the electric distribution company elects not to own the transmission cable, the developer may elect to do so directly, through an affiliate, or a third party and the power purchase agreement pricing shall be adjusted to allow the developer, an affiliate, or a third party, to recover the costs (including financing costs) of the transmission facilities, subject to complying with the terms as set forth in the power purchase agreement between the developer and the electric distribution company.

History of Section. P.L. 2009, ch. 51, § 1; P.L. 2009, ch. 53, § 1; P.L. 2009, ch. 216, § 1; P.L. 2009, ch. 217, § 1; P.L. 2010, ch. 31, § 1; P.L. 2010, ch. 32, § 1; P.L. 2020, ch. 79, art. 1, § 17.

Compiler’s Notes.

The Rhode Island economic development corporation, referred to in this section, is now the Rhode Island commerce corporation. See § 42-64-1.1 , as amended by P.L. 2014, ch. 7, § 1 and P.L. 2014, ch. 8, § 1.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

NOTES TO DECISIONS

Power-Purchase Agreement Approved.

Rhode Island Public Utilities Commission’s majority accurately interpreted and properly applied R.I. Gen. Laws § 39-26.1-7 , a provision of the Long-Term Contracting Standard for Renewable Energy, R.I. Gen. Laws tit. 39, ch. 26.1, in approving an amended power-purchase agreement between an electric company and a limited liability company where the commission’s findings were lawful and reasonable, fairly and substantially supported by legal evidence, and sufficiently specific to enable the court to ascertain that the evidence upon which the commission based its findings reasonably supported the result. In re Review of Proposed New Shoreham Project, 25 A.3d 482, 2011 R.I. LEXIS 105 (2011).

39-26.1-8. Utility-scale offshore wind project — Separate proceedings.

  1. Upon certification by the department of administration identifying the developer selected by the state to develop a utility-scale offshore wind farm, the developer may file an application under this section within one hundred eighty (180) days of the certification by the department. For the purposes of this section, “utility-scale offshore wind farm” shall mean a wind power project located offshore in the waters of Rhode Island or adjacent federal waters of at least 100 megawatts (100 MW) but not more than one hundred fifty megawatts (150 MW). The purpose of the application shall be for the applicant to request that the commission require a long-term contract with the electric distribution company. Should the commission approve a contract pursuant to this section, it shall not be counted towards the minimum long-term contract capacity specified in § 39-26.1-2(6) .
  2. The commission shall hold proceedings to review the proposal contained in the application. In reviewing the application, the commission shall determine whether the proposal is in the best interests of electric distribution customers in Rhode Island. In making this determination, the commission shall consider the following factors: (i) The economic impact and potential risks, if any, of the proposal on rates to be charged by the electric distribution company; (ii) The potential benefits of stabilizing long-term energy prices; (iii) Any other factor the commission determines necessary to be in the best interest of the ratepayers.
  3. The application will contain the following information:
    1. A complete description of the proposed project;
    2. A description of the legal entity that will enter into a long-term contract;
    3. A time line for permitting, licensing, and construction;
    4. Pricing projected under the long-term contract being sought, including prices for all market products that would be sold under the proposed long-term contract, subject to any contract negotiations between the applicant and the electric distribution company;
    5. Projected electrical energy production profiles;
    6. The proposed term for the long-term contract;
    7. Economic justification for the proposal, including projection of market prices;
    8. A description of the economic benefits to Rhode Island, including the creation of jobs in Rhode Island;
    9. All filings with state and federal regulatory agencies related to the proposal;
    10. All interconnection filings related to the proposal;
    11. A proposed initial term sheet for a long-term contract between the applicant and the electric distribution company.

      The information submitted in the application shall be subject to modification as a result of any negotiation of a contract ordered by the commission.

  4. The commission shall promulgate rules and regulations governing the proceedings outlined in this section by April 30, 2010.
  5. The applicant must serve copies of the application to the electric distribution company with whom the applicant is seeking a long-term contract, the division of public utilities and carriers, the office of energy resources, the department of administration, the economic development corporation, and the attorney general. Prior to the filing of any information, the applicant may seek a protective order to protect the confidentiality of information for good cause shown, to the extent that such information is proprietary or confidential business information, but unredacted copies of the entire filing must be provided to the parties identified in this subsection, who shall be bound by any protective order that may be issued regarding further disclosure.
  6. The electric distribution company, the division of public utilities and carriers, and the office of energy resources shall be mandatory parties to the proceeding. The applicant must pay for the reasonable costs of consultants or counsel that may be hired by the commission and the division for the proceeding, but in no case shall the applicant be liable for the costs in excess of $100,000 for the division and $100,000 for the commission, respectively.
  7. The commission shall issue a final order in the proceedings required by subsection (b) within eight (8) months of the filing of the application. If the commission determines that the proposal meets the standard outlined in subsection (b), the commission shall require the electric distribution company to negotiate a long-term contract with the applicant. The applicant, however, may decline to continue with the project for any reason at any time during the process outlined in this section. The commission may require changes to the applicant’s proposal as a condition to a long-term contract, as the commission determines are just and reasonable. The contract shall contain terms that are commercially reasonable. The contract also shall require that the electric distribution company purchase all of the output of the entire project, unless otherwise authorized by the commission. The parties shall present a proposed contract for review by the commission within three (3) months of the order requiring negotiations. If the parties are unable to reach agreement on a contract within three (3) months of the order requiring negotiations, the commission shall have the discretion to order the parties to arbitrate the dispute on an expedited basis. Once the contract terms are finalized by negotiation or arbitration, the contract shall be filed with the commission for review and approval. The commission shall approve the contract upon a finding that the contract is consistent with the purposes of this chapter and the standards set forth in subsection (b). The commission shall issue its final decision on the proposed contract within sixty (60) days of receiving the proposed contract. Upon execution of the contract, the provisions of §§ 39-26.1-4 and 39-26.1-5 shall apply, and all costs incurred in the negotiation, administration, enforcement, and implementation of the agreement shall be recovered annually by the electric distribution company in electric distribution rates. To the extent the application cites significant economic benefits to Rhode Island that require commitments from the applicant outside of the long-term contract to achieve such benefits, and those economic benefits are ultimately relied upon by the commission in authorizing a long-term contract to be negotiated, the commission may require that appropriate legally binding commitments be made by the applicant as a condition to a long-term contract, unless the commission finds that such commitments are not necessary.
  8. Notwithstanding any other provision of this section, the application process does not convey a legal entitlement to the applicant to a long-term contract. Rather, the purpose of the proceeding is to leave the final decision as to whether a long-term contract should be required to the discretion of the commission, subject to the standards outlined in this section and the purposes of this chapter.
  9. An applicant under this section shall not be permitted to submit a proposal under the solicitations required in § 39-26.1-3 , except that such applicant shall be permitted to submit a proposal under § 39-26.1-7 .
  10. Should a proceeding pursuant to this section result in the commission not ordering the distribution company to enter into a long-term contract for a utility-scale offshore wind project, or should the certified developer fail to file an application with the commission within one hundred eighty (180) days of certification, the certification shall be deemed void. In such case, if the commission determines it is in the interest of electric distribution customers to have another utility-scale project considered for a long-term contract, the commission has the discretion to request the department of administration to certify a different developer to make another proposal for a utility-scale offshore wind project per this section, provided that the commission makes such request within ninety (90) days of the certification becoming void. If the commission makes the request, the department of administration may, but is not required to, certify another project and shall have ninety days to submit another certification. If the certification is not made within the time allowed, no further action shall be taken by the commission pursuant to this section. Under no circumstances is a distribution company required to enter into more than one contract under this section.
  11. Approval of a contract under this section shall not be interpreted to prevent, hinder, or diminish the ability of any offshore wind project or developer to pursue, finance, seek the development of, or secure permits or electrical interconnection for offshore wind projects in or adjacent to the state, or whose output may be utilized in the state.

History of Section. P.L. 2009, ch. 51, § 1; P.L. 2009, ch. 53, § 1.

Compiler’s Notes.

The economic development corporation, referred to in this section, is now the commerce corporation. See § 42-64-1.1 , as amended by P.L. 2014, ch. 7, § 1 and P.L. 2014, ch. 8, § 1.

39-26.1-9. Town of Johnston project.

Notwithstanding any other provisions of this chapter to the contrary:

  1. The Narragansett Electric Company is hereby authorized, at its sole discretion, to procure a commercially reasonable long-term contract for a newly developed renewable energy resource fueled by landfill gas from the central landfill in the town of Johnston on a timetable earlier than is otherwise set forth in this chapter.
  2. Any such contract executed on or before May 21, 2010, shall be legal, binding, and enforceable and shall not be subject to commission approval if:
    1. The resource has a gross nameplate capacity rating of less than thirty-seven megawatts (37 MW); and
    2. The contract is:
      1. For a term not in excess of twenty (20) years; and
      2. Contains the other terms and conditions as may be approved by the director of the department of administration, the approval to be indicated by written confirmation of the director delivered to an electric distribution company prior to the contract becoming effective.
  3. The power purchase agreement shall be reviewed by the administrator of the division of public utilities and carriers, the executive director of the Rhode Island economic development corporation, the administrator of the office of energy resources, and the director of the department of administration. Certified copies of the executed agreement shall be provided to each agency by the Narragansett Electric Company and published on the website of the division of public utilities and carriers for public inspection. Members of the public shall have fifteen (15) days to submit written comments to the four (4) agencies for the respective agency consideration; however, no evidentiary hearings shall be required.
  4. Within thirty (30) days of receipt of the agreement, each of the four (4) agencies in subsection (3) of this section shall issue a certification or decline certification in writing. The certifications or declinations shall be final and conclusive as a matter of law and not subject to appeal. The respective certification determinations shall be made to the division of public utilities and carriers as follows:
    1. The administrator of the division of public utilities and carriers shall certify the agreement if the administrator determines that the agreement is consistent with the provisions of this chapter and this section;
    2. The executive director of the Rhode Island economic development corporation shall certify the agreement if the executive director determines that the project encourages and facilitates the creation of jobs in Rhode Island in the renewable energy sector;
    3. The administrator of the office of energy resources shall certify the agreement if the administrator determines that the agreement fulfills the declared policy of this chapter and this section;
    4. The director of the department of administration shall certify the agreement if the director determines that the contractual terms of the agreement are reasonable and in the best interest of the state in accordance with this chapter and section.
  5. Upon receipt of the certifications pursuant to subsection (4) of this section, the division shall review the certifications and confirm that each is in conformance with this section.
  6. Within five (5) days of receipt of the certifications by the division, the division shall file the agreement with the commission. Upon the filing, the agreement shall be deemed accepted and fully enforceable.
  7. If one or more of the certifications is not received by the division within the thirty-day (30) period established by this section, the division shall, within fifteen (15) days, consider the reasons, if any, provided by the agency not providing the certification and the division shall, within the fifteen-day (15) period, make a final determination on the question originally assigned to the non-certifying agency. If the division determines that, notwithstanding the lack of certification from the non-certifying agency, the certification should be issued, the division shall make the certification, which certification shall have the same effect as if it had been made by the agency that first considered the question. If, in the case of a lack of certification from an agency, the division determines that such certifications shall not be issued, then the division shall not file the agreement with the commission and the agreement shall have no effect.
  8. The Narragansett Electric Company’s act of having entered into this agreement and its terms and pricing shall be deemed prudent for purposes of any future regulatory proceedings before the commission and recovery of the costs incurred in making payments under the terms of the agreement shall not be subject to challenge in any future commission proceedings. The provisions of § 39-26.1-4 and the provisions of subsections (b), (c), (d), and (f) of § 39-26.1-5 shall apply, and all costs incurred in, or savings resulting from, the administration and implementation of the agreement shall be recovered annually by the electric distribution company and its customers in electric distribution rates. Any contract entered into pursuant to this section shall count as part of the minimum long-term contract capacity.
  9. The electric distribution company shall be authorized upon appropriate notice and filing with the commission, to allocate all products purchased under any power purchase agreements entered into pursuant to this chapter to its standard-offer service customers at the market price and to allocate any difference, whether positive or negative, between the costs of the power purchase agreement and the market price of the products purchased under the power purchase agreement to all of its electric distribution customers.
  10. The provisions of this section shall be severable from the other provisions of this chapter, and shall remain in effect regardless of any judicial challenge to other sections of this chapter.

History of Section. P.L. 2010, ch. 14, § 2; P.L. 2010, ch. 18, § 2; P.L. 2020, ch. 79, art. 1, § 17.

Compiler’s Notes.

The Rhode Island economic development corporation, referred to in this section, is now the Rhode Island commerce corporation. See § 42-64-1.1 , as amended by P.L. 2014, ch. 7, § 1 and P.L. 2014, ch. 8, § 1.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

Chapter 26.2 Distributed Generation Standard Contracts

39-26.2-1. Short title.

This chapter shall be known as and may be cited as “The Distributed Generation Standard Contracts Act.”

History of Section. P.L. 2011, ch. 129, § 1; P.L. 2011, ch. 143, § 1.

39-26.2-2. Purpose.

The purpose of this chapter is to facilitate and promote installation of grid-connected generation of renewable energy; support and encourage development of distributed renewable energy generation systems; reduce environmental impacts; reduce carbon emissions that contribute to climate change by encouraging the local siting of renewable energy projects; diversify the state’s energy generation sources; stimulate economic development; improve distribution system resilience and reliability; and reduce distribution system costs.

History of Section. P.L. 2011, ch. 129, § 1; P.L. 2011, ch. 143, § 1.

39-26.2-3. Definitions.

When used in this chapter, the following terms shall have the following meanings:

  1. “Annual target” means the target for total renewable energy nameplate capacity of new distributed-generation standard contracts set out in § 39-26.2-4 .
  2. “Board” shall mean the distributed generation standard contract board established pursuant to the provisions of § 39-26.2-10 , or the office of energy resources. Until such time as the board is duly constituted, the office of energy resources shall serve as the board with the same powers and duties pursuant to this chapter.
  3. “Commission” means the Rhode Island public utilities commission.
  4. “Distributed-generation contract capacity” means ten percent (10%) of an electric distribution company’s minimum long-term contract capacity under the long-term contracting standard for renewable energy in § 39-26.1-3 , inclusive of solar capacity. The distributed-generation contract capacity shall be reserved for acquisition by the electric distribution company through standard contracts pursuant to the provisions of this chapter.
  5. “Distributed-generation facility” means an electrical-generation facility that is a newly developed renewable energy resource as defined in § 39-26.1-2 , located in the electric distribution company’s load zone with a nameplate capacity no greater than five megawatts (5 MW), using eligible renewable energy resources as defined by § 39-26-5 , including biogas created as a result of anaerobic digestion, but, specifically excluding all other listed eligible biomass fuels, and connected to an electrical power system owned, controlled, or operated by the electric distribution company.
  6. “Distributed-generation project” means a distinct installation of a distributed-generation facility. An installation will be considered distinct if it is installed in a different geographical location and at a different time, or if it involves a different type of renewable energy class.
  7. “Electric distribution company” means a company defined in § 39-1-2(a)(12) , supplying standard-offer service, last-resort service, or any successor service to end-use customers, but not including the Block Island Power Company or the Pascoag Utility District.
  8. “Large distributed-generation project” means a distributed-generation project that has a nameplate capacity that exceeds the size of a small distributed-generation project in a given year, but is no greater than three megawatts (3 MW) nameplate capacity.
  9. “Office” means the Rhode Island office of energy resources.
  10. “Program year” means a calendar year beginning January 1 and ending December 31.
  11. “Renewable energy classes” means categories for different renewable energy technologies using eligible renewable energy resources as defined by § 39-26-5 . For each program year, the board shall determine the renewable energy classes as are reasonably feasible for use in meeting distributed-generation objectives from renewable energy resources and are consistent with the goal of meeting the annual target for the program year. For the program year ending December 31, 2012, there shall be at least four (4) technology classes and at least two (2) shall be for solar-generation technology, and at least one shall be for wind. The board may add, eliminate, or adjust renewable energy classes for each program year with public notice given at least sixty (60) days previous to any renewable energy class change becoming effective. For each program year, the board shall set renewable energy class targets for each class established. Class targets are the total program-year target amounts of nameplate capacity reserved for standard contracts for each renewable energy class. The sum of all the class targets shall equal the annual target.
  12. “Renewable energy credit” means a New England Generation Information System renewable energy certificate as defined in § 39-26-2(14) ;
  13. “Small distributed-generation project” means a distributed-generation, renewable energy project that has a nameplate capacity within the following: Solar: fifty kilowatts (50 KW) to five hundred kilowatts (500 KW); Wind: fifty kilowatts (50 KW) to one and one-half megawatts (1.5 MW). For technologies other than solar and wind, the board shall set the nameplate capacity size limits, but such limits may not exceed one megawatt. The board may lower the nameplate capacity from year to year for any of these categories, but may not increase the capacity beyond what is specified in this definition. In no case may a project developer be allowed to segment a distributed-generation project into smaller-sized projects in order to fall under this definition.
  14. “Standard contract” means a contract with a term of fifteen (15) years at a fixed rate for the purchase of all capacity, energy, and attributes generated by a distributed-generation facility. A contract may have a different term if it is mutually agreed to by the seller and the electric distribution company and it is approved by the commission. The terms of the standard contract for each program year and for each renewable energy class shall be set pursuant to the provisions of this chapter.
  15. “Standard contract ceiling price” means the standard contract price for the output of a distributed-generation facility which price is approved annually for each renewable energy class pursuant to the procedure established in this chapter, for the purchase of energy, capacity, renewable energy certificates, and all other environmental attributes and market products that are available or may become available from the distributed-generation facility.

History of Section. P.L. 2011, ch. 129, § 1; P.L. 2011, ch. 143, § 1; P.L. 2013, ch. 167, § 2; P.L. 2013, ch. 202, § 2; P.L. 2020, ch. 79, art. 1, § 18.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

39-26.2-4. Standard contracts — Annual targets.

  1. To the extent eligible projects are available and submit conforming applications, an electric distribution company shall enter into standard contracts for an aggregate nameplate capacity of at least forty megawatts (40 MW) of distributed-generation projects by the end of 2014, unless such schedule is extended by the board. The contracting shall be spread over four (4) years, based on the annual targets, aggregated to reflect annual targets from prior program years, contained in the following four-year (4) phased schedule, unless such schedule is adjusted by the board in any given year:
    1. By December 30, 2011: a minimum of five megawatts (5 MW) nameplate;
    2. By December 30, 2012: a minimum aggregate of twenty megawatts (20 MW) nameplate;
    3. By December 30, 2013: a minimum aggregate of thirty megawatts (30 MW) nameplate;
    4. By December 30, 2014: a minimum aggregate of forty megawatts (40 MW) nameplate.
  2. By October 15, 2011, and each calendar year following until October 15, 2013, the board may recommend to the commission that the annual target for the following program year be adjusted upward to reflect any shortfalls in meeting the previous program year’s annual target or to reflect any standard contracts entered into during prior program years that are voided. The board may also recommend to the commission that the annual target for the following program year be adjusted downward by any amounts that the previous program year’s annual targets were exceeded by the standard contracts entered into during that program year.
  3. The board may, based on market data and other information available to it including pricing for standard contracts received during previous program years, recommend a reduction of the annual target for the upcoming program year where the board determines that market conditions would be likely to produce unfavorably high target pricing for standard contracts during that upcoming program year. In considering such issues, the board may take into account the reasonableness of current pricing and its impact on all electric distribution customers who will be paying for the output for up to twenty (20) years at such prices. The board may recommend and the commission shall authorize an extension of time to achieve the forty megawatt (40 MW) targets, to allow for contracting to occur after 2014, if necessary.
  4. The electric distribution company must contract for at least forty megawatts (40 MW) of nameplate capacity distributed-generation projects by the end of 2014, unless such schedule is extended by the board. The electric distribution company may not be required to contract for more than forty megawatts (40 MW) or the distributed-generation contract capacity, but may do so voluntarily, subject to commission approval.
  5. Each year, the board shall file its recommendations relating to the schedule, along with its report and recommendations regarding ceiling prices, for the commission’s review and approval as specified in § 39-26.2-5(b) .
  6. Nothing in this chapter shall derogate from the statutory authority of the commission or the division, including, but not limited to, the authority to protect ratepayers from unreasonable rates.

History of Section. P.L. 2011, ch. 129, § 1; P.L. 2011, ch. 143, § 1; P.L. 2013, ch. 167, § 2; P.L. 2013, ch. 202, § 2.

39-26.2-5. Standard contract ceiling price.

  1. Within a period of time sufficient to accomplish the purposes of this section, but not longer than ninety (90) days after the effective date of this chapter, the board shall set ceiling prices and annual targets for each renewable energy class of distributed generation for the 2011 program year and make a filing with the commission pursuant to this chapter recommending such prices and targets. Thereafter annually, by no later than October 15 of each year, the board shall make filings with the commission to recommend the standard contract ceiling prices and annual targets for each renewable energy class of distributed-generation facility. The ceiling price for each technology should be a price that would allow a private owner to invest in a given project at a reasonable rate of return, based on recent reported and forecast information on the cost of capital, and the cost of generation equipment. The calculation of the reasonable rate of return for a project shall include where applicable any state or federal incentives including, but not limited to, tax incentives. In setting the ceiling prices, the board also may consider: (1) Transactions for newly developed renewable energy resources, by technology and size, in the ISO-NE region and the northeast corridor; (2) Pricing for standard contracts received during the previous program year; (3) Environmental benefits, including, but not limited to, reducing carbon emissions, and system benefits; and (4) Cost-effectiveness. The board shall, in performing this assessment, involve representation from its advisory council, if applicable, and from the office of energy resources, the electric distribution company, and the energy efficiency and resources management council. The board shall hold, with at least ten (10) business days’ notice, a public community review meeting. The board shall issue a report of its findings from the assessment process recommending standard contract ceiling prices for the upcoming program year. Such report shall be filed with the commission, along with a recommendation for the approval of the ceiling prices for the program year.
  2. The commission shall open a docket to consider for approval ceiling prices proposed by the board. In reviewing the recommended ceiling prices, the commission shall give due consideration to the recommendations and report of the board and the standards set forth in subsection (a). The commission shall issue a decision within sixty (60) days after the recommendations and report are filed with the commission establishing the ceiling prices to be used by electric distribution companies in standard contracts applicable to each renewable energy class in order to effectuate the purposes and provisions of this chapter.
  3. During any program year, the board may, on its own initiative, elect to revisit the ceiling prices if the board determines that the prices are either too low or too high. In that case, it may make a filing with the commission to seek a modification to the program for that year, which shall be acted upon by the commission within sixty (60) days. While the request is pending, the electric distribution company may suspend executing standard contracts until a decision is reached on the request.

History of Section. P.L. 2011, ch. 129, § 1; P.L. 2011, ch. 143, § 1.

39-26.2-6. Standard contract enrollment program.

  1. Each electric distribution company shall conduct at least three (3) standard contract enrollments during each program year; however, during 2011, the electric distribution company need only conduct one enrollment. Each enrollment shall be open for a two-week (2) period during which the electric distribution company is required to receive standard short-form applications requesting standard contracts for distributed-generation energy projects. The short-form applications shall require the applicant to provide the project owner’s identity and the project’s proposed location, nameplate capacity, and renewable energy class and allow for additional information relative to the permitting, financial feasibility, ability to build, and timing for deployment of the proposed projects. For small distributed-generation projects, the applicant must submit an affidavit confirming that the project is not a segment of a larger project being planned for enlargement over time. For large distributed-generation projects, the short-form application shall also require the applicant to bid a bundled price for the sale of the energy, capacity, renewable energy certificates, and all other environmental attributes and market products that are available or may become available from the distributed-generation facility, on a per-kilowatt-hour basis for the output of the project. Subject to the provisions of subsections (b) and (c), the electric distribution company shall not be required to enter into standard contracts in excess of the annual target for the applicable program year and shall not be required to enter into standard contracts in excess of any limit set by the board and approved by the commission for a given enrollment. However, the electric distribution company may voluntarily exceed an enrollment period limit as long as it does not exceed an annual target for the applicable program year.
  2. For small distributed-generation projects, the electric distribution company shall select projects for standard contracts based on the lowest proposal prices received with any distributed-generation project that meets the requirements of all applicable tariffs and regulations, and meets the criteria of a renewable energy class in effect, until the class target is met. Enrollment periods will be governed by a solicitation and enrollment process rules that shall be filed with the commission each October 15 by the electric distribution company, and approved by the commission within sixty (60) days of such filing.
  3. For large distributed-generation projects, the electric distribution company shall select projects for standard contracts based on the lowest proposed prices received, but not to exceed the applicable standard contract ceiling price, provided, that the selected projects meet the requirements of all applicable tariffs and regulations and meet the criteria of a renewable energy class in effect until the class target is met. Except for 2011, no enrollment period shall seek to enroll more than one-third (1/3) of the annual goal for the distribution company for large distributed-generation projects.
  4. If there are more projects than what is specified for a class target at the same price, the electric distribution company shall review the applications submitted and select first those projects that appear to be the furthest along in development and likely to be deployed in consultation with the office. Those projects that are likely to be deployed on the earliest timelines shall be selected. To the extent the electric distribution company is unable to make a clear distinction on this basis, the electric company shall report the results to the board and not enter into contracts with those projects that are tied on pricing. In such case, the board may take such action as it deems appropriate for the selection of projects, including seeking more information from the projects. Alternatively, the board may consider adjustments to the ceiling price and a rebid, or simply wait until the next enrollment.
  5. Should an electric distribution company determine that it has entered into sufficient standard contracts to achieve a program-year class target, it shall immediately report this to the board, the office of energy resources, and the commission, and cease entering into standard contracts for that renewable energy class for the remainder of the program year. An electric distribution company may exceed the renewable energy class target if the last standard contract entered into may cause the total purchased to exceed the target. The office and the electric distribution company shall enter into a memorandum of understanding regarding the sharing of the information and data related to the distributed-generation program.
  6. The electric distribution company is authorized to enter into standard contracts up to the applicable ceiling price. As long as the terms of the standard contract are materially the same as the standard contract terms approved by the commission and the pricing is no higher than the applicable ceiling price, the contracts shall be deemed prudent and approved by the commission for purposes of recovering the costs in rates.
  7. A distributed-generation project that also is being employed by a customer for net-metering purposes may submit an application to sell the excess output from its distributed-generation project. In such case, however, at the election of the self-generator, all of the renewable energy certificates and environmental attributes pertaining to the energy consumed on site may be sold to the electric distribution company on a month-to-month basis outside of the terms of the standard contract. In such case, the portion of the renewable energy certificates that pertains to the energy consumed on site during the net-metering billing period shall be priced at the average market price of renewable energy certificates, which may be determined by using the price of renewable energy certificates purchased or sold by the electric distribution company.

History of Section. P.L. 2011, ch. 129, § 1; P.L. 2011, ch. 143, § 1; P.L. 2013, ch. 167, § 2; P.L. 2013, ch. 202, § 2.

39-26.2-7. Standard contract — Form and provisions.

The following process shall be implemented to establish the non-price terms and conditions of the standard contract:

  1. A working group (“contract working group”) shall be established and supervised by the board, consisting of the following members: (i) The director of the office of energy resources; (ii) A designee from the division of public utilities and carriers; (iii) Two (2) designees of the electric distribution company; (iv) Two (2) individuals designated by the office of energy resources who are experienced developers of renewable-generation projects; (v) One individual designated by the office of energy resources who represents a customer of the electric distribution company; and (vi) A lawyer designated by the office of energy resources who has at least three (3) years of experience in negotiating and/or developing power-purchase agreements. With respect to the lawyer designated in (vi), the electric distribution company shall enter into a cost-reimbursement agreement with the lawyer, to compensate the lawyer for the time spent serving in the contract working group at the reasonable hourly rate negotiated by the office of energy resources. The costs incurred by the electric distribution company under the reimbursement agreement shall be recovered in rates by the electric distribution company in the year incurred or the year following incurrence through an appropriate filing with the commission. The contract working group shall be an advisory group that is not to be considered to be an agency for purposes of the administrative procedures act or any other laws pertaining to public bodies.
  2. The contract working group shall work in good faith to develop standard contracts that would be applicable for various technologies for both small and large distributed-generation projects. The standard contracts should balance the need for the project to obtain financing against the need for the distribution company to protect itself and its distribution customers against unreasonable risks. The standard contract should be developed from contracting terms typically utilized in the wholesale power industry, taking into account the size of each project and the technology. The standard contracts shall provide for the purchase of energy, capacity, renewable energy certificates, and all other environmental attributes and market products that are available, or may become available from the distributed-generation facility. However, the electric distribution company shall retain the right to separate out pricing for each market product under the contracts for administrative and accounting purposes to avoid any detrimental accounting effects or for administrative convenience, provided that such accounting, as specified in the contract, does not affect the price and financial benefits to the seller as a seller of a bundled product. The standard contract also shall:
    1. Hold the distributed-generation facility owner liable for the cost of interconnection from the electric-distribution facility to the interconnect point with the distribution system, and for any upgrades to the existing electric-distribution system that may be required by the electric distribution company. However, a distributed-generation facility owner may appeal to the commission to reduce any required system upgrade costs to the extent such upgrades can be shown to benefit other customers of the electric distribution company and the balance of such costs shall be included in rates by the electric distribution company for recovery in the year incurred or the year following incurrence;
    2. Require the distributed-generation facility owner to make a performance guarantee deposit to the electric distribution company of fifteen dollars ($15.00) for small distributed-generation projects or twenty-five dollars ($25.00) for large distributed-generation projects for every renewable energy certificate estimated to be generated per year under the contract, but at least five hundred dollars ($500), and not more than seventy-five thousand dollars ($75,000), paid at the time of contract execution;
    3. Require the electric distribution company to refund the performance-guarantee deposit on a pro-rated basis of renewable energy credits actually delivered by the distributed-generation facility over the course of the first year of the project’s operation, paid quarterly;
    4. Provide that if the distributed-generation facility has not generated ninety percent (90%) of the output proposed in its enrollment application within eighteen (18) months after execution of the contract, the contract shall be terminated and the performance guarantee shall be forfeited. An eligible, small-scale, hydropower-distributed-generation facility that has not generated ninety percent (90%) of the output proposed in its enrollment application within forty-eight (48) months after execution of the contract shall result in the contract being terminated and the performance guarantee being forfeited. An eligible anaerobic-digestion-distributed-generation facility that has not generated ninety percent (90%) of the output proposed in its enrollment application within thirty-six (36) months after execution of the contract shall result in the contract being terminated and the performance guarantee being forfeited. Any forfeited performance-guarantee deposits shall be credited to all distribution customers in rates and not retained by the electric distribution company;
    5. Provide for flexible payment schedules that may be negotiated between the buyer and seller, but shall be no longer than quarterly if an agreement cannot be reached;
    6. Require that an electric meter that conforms with standard industry norms be installed to measure the electrical energy output of the distributed-generation facility, and require a system or procedure by which the distributed-generation facility owner shall demonstrate creation of renewable energy credits, in a manner recognized and accounted for by the GIS; such demonstration of renewable energy credit creation to be at the distributed-generation facility owner’s expense. The electric distribution company may, at its discretion, offer to provide such a renewable energy credit measurement and accounting system or procedure to the distributed-generation facility owner, and the distributed-generation facility owner may, at its discretion, use the electric distribution company’s program, or use that of an independent third party, approved by the commission, and the costs of the measurement and accounting are paid for by the distributed-generation facility owner.
    7. All distributed-generation projects that have executed contracts will be required to submit quarterly reports on the progress of the project to the distribution company and the office of energy resources. Failure to submit these quarterly progress reports may result in the termination of the contract.
  3. If the contract working group reaches agreement on the terms of standard contracts, the board shall file the contracts with the commission for approval. If there are any disagreements, they shall be identified to the commission. The commission shall review the standard contracts for conformance with the standards set forth in subsection (2). Should there be any disputes, the commission shall issue an order resolving them. To the extent the commission needs expert assistance to resolve any disagreements noted in the filing, the commission is authorized to hire a consultant to assist it in the proceedings, the costs of which shall be recovered from electric distribution customers pursuant to a uniform factor established by the commission in rates for recovery by the electric distribution company in the year incurred or the year following incurrence, as requested through a filing by the electric distribution company. The commission shall issue an order approving standard forms of contract within sixty (60) days of the filing.

History of Section. P.L. 2011, ch. 129, § 1; P.L. 2011, ch. 143, § 1; P.L. 2013, ch. 167, § 2; P.L. 2013, ch. 202, § 2; P.L. 2014, ch. 200, § 4; P.L. 2014, ch. 216, § 4.

39-26.2-8. Standard contract — Reporting.

  1. After each enrollment during a program year, the electric distribution companies shall provide a report to the board, office of energy resources, and the commission of the aggregate amount of project nameplate capacity that was the subject of standard contracts entered into during that enrollment and the prices under each of the standard contracts that were executed.
  2. Each quarter of a program year, the electric distribution company shall provide an accounting to the office of energy resources, the board, and the commission of the total amount paid to distributed-generation facilities under standard contracts during that quarter, until the forty megawatt (40 MW) target is met.
  3. Until the forty megawatt (40 MW) target is met, the electric distribution company shall submit preliminary reports to the office of energy resources, the board, and the commission indicating the number of standard contracts and total estimated annual generation, price, class, and any other relevant information for the purposes of better specifying classes, targets, or standard contract prices so as to achieve the purposes set forth in this chapter. These reports shall be submitted no later than sixty (60) days prior to the end of the calendar year.
  4. The electric distribution company shall in consultation with the office utilize uniform standard forms for evaluating project proposals and shall rank projects according to uniform criteria.
  5. At the end of each enrollment, the electric distribution company shall, upon request by an applicant, provide the applicant with written feedback on the evaluation of the applicant’s project proposal.

History of Section. P.L. 2011, ch. 129, § 1; P.L. 2011, ch. 143, § 1; P.L. 2013, ch. 167, § 2; P.L. 2013, ch. 202, § 2.

39-26.2-9. Interaction with other statutory provisions.

Except as expressly differentiated in this chapter, standard contracts entered into pursuant to this chapter shall be treated for all purposes as long-term contracts entered into under the provisions of the long-term contracting standards for renewable energy found in chapter 26.1 of this title, and all such provisions shall apply to such contracts.

History of Section. P.L. 2011, ch. 129, § 1; P.L. 2011, ch. 143, § 1.

39-26.2-10. Establishment of board — Purposes.

  1. There is hereby authorized, created, and established a board to be known as “The Distributed Generation Standard Contract Board” with the powers and duties set forth in this chapter.
  2. The purposes of this board are to:
    1. Evaluate and make recommendations to the commission regarding ceiling prices and annual contracting targets, the make-up of renewable energy classes, and the terms of standard contracts under the provisions of this chapter;
    2. Provide consistent, comprehensive, informed, and publicly accountable involvement by representatives of groups impacted by, involved in, and knowledgeable regarding the development of distributed-generation projects that are eligible to enter into standard contracts; and
    3. Monitor and evaluate the effectiveness of the distributed-generation standard contracting program for the purchase of the energy output of distributed renewable-generation projects.

History of Section. P.L. 2011, ch. 129, § 1; P.L. 2011, ch. 143, § 1.

Cross References.

Continuation of board as the distributed-generation board, see § 39-26.6-4 .

39-26.2-11. Composition and appointment.

  1. The board shall consist of ten (10) members appointed by the governor with the advice and consent of the senate; seven (7) members shall be voting members, and the governor shall give due consideration to appointing persons with knowledge of: (1) Energy regulation and law; (2) Large commercial/industrial users; (3) Small commercial/industrial users; (4) Residential users; (5) Low-income users; (6) Environmental issues pertaining to energy; and (7) Construction of renewable generation. Three (3) members shall be ex officio, nonvoting members, one representing an electric distribution company, one representing the commissioner of the office of energy resources, and one representing the commerce corporation. From the seven (7) voting members, the governor shall appoint one person to be chairperson of the board and one person to be vice chairperson of the board; the commissioner of the office of energy resources shall be the executive secretary and executive director of the board.
  2. With the exception of the representative of the commissioner of the office of energy resources, and the representative of the commerce corporation, the initial appointment of the other ex officio, nonvoting member shall be for a term of two (2) years, to be thereafter reappointed or replaced by a nonvoting member with terms of two (2) years. Of the initial appointments of voting members, three (3) voting members shall be appointed for a term of two (2) years, to be thereafter reappointed or replaced by three (3) voting members with a term of two (2) years, and four (4) voting members shall be appointed for a term of one year, to be thereafter reappointed or replaced for each of the following three (3) years by four (4) voting members with a term of one year.
  3. A simple majority of the total number of voting members shall constitute a quorum.
  4. A vacancy other than by expiration shall be filled in the manner of the original appointment but only for the unexpired portion of the term. The appointing authority shall have the power to remove its appointee only for just cause.
  5. The members of the board shall not be compensated for their service but shall be reimbursed for their actual expenses necessarily incurred in the performance of their duties. The provisions of this subsection shall not apply to the executive secretary/executive director.

History of Section. P.L. 2011, ch. 129, § 1; P.L. 2011, ch. 143, § 1; P.L. 2020, ch. 79, art. 1, § 18.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

39-26.2-12. Powers and duties.

  1. The board shall have the power to:
    1. Develop and recommend to the public utilities commission, for review and approval, ceiling prices for standard contracts under the distributed-generation standard contracts;
    2. Develop and recommend to the commission adjustments up or down to the annual target for standard contracts for the following program year;
    3. Monitor and evaluate performance under the distributed-generation standard contracts act, including an assessment of ratepayer impact and the project selection process, to be submitted annually in a report to the governor and the general assembly as provided in subsection (b);
    4. Participate in proceedings of the public utilities commission that pertain to the purposes of the board;
    5. In order to provide funding for the purposes of engaging consultants and professional services as necessary and appropriate for the board to fulfill its duties and purposes, an allocation of no less than fifty thousand dollars ($50,000) from unused portions of Regional Greenhouse Gas Initiative (“RGGI”) auction proceeds not dedicated to efficiency measures but to overhead expenses shall be transmitted from the office of energy resources to the board.
  2. On January 15 of each year, the office of energy resources shall submit to the governor, the president of the senate, and the speaker of the house of representatives, an annual jobs, economic impact, and environmental impact study on the distributed-generation standard contracts program. The study shall include, but not be limited to, environmental benefits, including carbon emission reductions from the installations; economic impacts including, but not limited to, direct and indirect jobs created; system reliability improvements; property and income tax benefits; and ratepayer impacts including, but not limited to, hedges against general inflation and fuel price volatility, short-term price impacts, and wholesale price suppression.

History of Section. P.L. 2011, ch. 129, § 1; P.L. 2011, ch. 143, § 1; P.L. 2013, ch. 167, § 2; P.L. 2013, ch. 202, § 2.

39-26.2-13. Liberal construction of chapter required.

This chapter shall be construed liberally in aid of its declared purposes.

History of Section. P.L. 2011, ch. 129, § 1; P.L. 2011, ch. 143, § 1.

39-26.2-14. Severability.

If any provision of this chapter or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the chapter that can be given effect without the invalid provision or application, and to this end the provisions of this chapter are declared to be severable.

History of Section. P.L. 2011, ch. 129, § 1; P.L. 2011, ch. 143, § 1.

Chapter 26.3 Distributed Generation Interconnection

39-26.3-1. Policy objective.

The general assembly hereby finds and declares that the expeditious completion of the application process for renewable distributed generation is in the public interest. For this reason, certain standards and other provisions for the processing of applications are hereby set forth to assure that the application process assists in the development of renewable generation resources in a timely manner.

History of Section. P.L. 2011, ch. 140, § 1; P.L. 2011, ch. 144, § 1.

39-26.3-2. Definitions.

The following terms shall have the meanings given below for purposes of this chapter:

  1. “Applicant” means an electric distribution customer or distributed-generation developer who submits an application to the electric distribution company for the installation of a renewable distributed-generation interconnection to the distribution system for a renewable distributed-generation project that, as contemplated, meets the eligibility requirements for net metering contained within this title or the eligibility requirements for a standard contract contained within this title.
  2. “Feasibility study” means a high-level project assessment that includes an estimate of the cost of interconnecting to the distribution system that would be assessed on the applicant for an interconnection. The estimate is not based on any engineering study, but is based on past experience and judgment of the electric distribution company, taking into account the information in the application, the location of the interconnection, and general knowledge of the distribution and transmission system. The estimate cannot be relied upon by the applicant for purposes of holding the electric distribution company liable or responsible for its accuracy as long as the electric distribution company has provided the estimate in good faith. The feasibility study estimate shall be a range within which the electric distribution company believes the interconnection costs are likely to be and shall include a disclaimer that explains the nature of the estimate.
  3. “Feasibility study fee” means a fee that shall be charged to the applicant to obtain a feasibility study as specified in § 39-26.3-4 .
  4. “Impact study” means an engineering study that includes an estimate of the cost of interconnecting to the distribution system that would be assessed on the applicant for an interconnection that is based on an engineering study of the details of the proposed generation project. The estimate generally will have a probability of accuracy of plus or minus twenty-five percent (25%). The estimate may be relied upon by the applicant for purposes of determining the expected cost of interconnection, but the distribution company may not be held liable or responsible if the actual costs exceed the estimate as long as the estimate was provided in good faith and the interconnection was implemented prudently by the electric distribution company.
  5. “Impact study fee” means a fee that shall be charged to the applicant to obtain an impact study as specified in § 39-26.3-4 .
  6. “Renewable energy resource” means those resources set forth in § 39-26-5 .

History of Section. P.L. 2011, ch. 140, § 1; P.L. 2011, ch. 144, § 1; P.L. 2017, ch. 112, § 1; P.L. 2017, ch. 176, § 1.

39-26.3-3. Application process.

  1. The application process set out in this section shall be applicable to electric distribution companies thirty (30) days after the enactment of this chapter.
  2. An applicant for a renewable distributed-generation interconnection must submit an application to the electric distribution company for an impact study, including a request for an estimate of the cost of interconnecting the renewable distributed-generation resource to the distribution system. The applicant may request a feasibility study prior to requesting an impact study, but the applicant is not required to do so and may submit an application for an impact study without having obtained a feasibility study. The distribution company shall follow the schedule below for all applications.
  3. Upon receipt of a completed application requesting a feasibility study and receipt of the applicable feasibility study fee, the electric distribution company shall provide a feasibility study to the applicant within thirty (30) days.
  4. Upon receipt of a completed application requesting an impact study and receipt of the applicable impact study fee, the electric distribution company shall provide an impact study within ninety (90) days.
  5. In anticipation of the electric distribution company needing to add resources that are not currently in Rhode Island or covered in rates, to provide the necessary services to advance the aggressive goals and objectives set forth in this title, the electric distribution company shall be authorized to add up to two (2) incremental employee resources located in Rhode Island that shall be primarily dedicated to servicing Rhode Island applicants and customers in connection with net metering and the development of distributed-generation resources, including the requisite resources to perform impact and feasibility studies for distributed-generation interconnections and to assure that feasibility studies and impact studies, as well as other engineering activity necessary to facilitate the completion of distributed-generation projects in Rhode Island, are implemented and delivered on a timely basis. Prior to new rates going into effect following the company’s next general rate case filing, the cost of the incremental employee resources shall be recovered through rates on an annual basis through an annual reconciliation mechanism, provided that the total amount of fees collected from impact studies and feasibility studies shall be netted against such costs. Only the cost of time and work actually spent on Rhode Island renewable energy project matters shall be included in the annual reconciliation. The commission shall have the authority to review these positions in the electric distribution company’s next general rate case as a cost of service in the same manner as it reviews all other expenses in a rate case to determine whether they should continue. Nothing contained in this section shall preclude the electric distribution company from adding additional resources, subject to commission approval.
  6. Notwithstanding any other provision of this chapter, the application process and fees set forth in this chapter apply only to interconnections to the distribution system by renewable distributed-generation resources. To the extent that a renewable generation resource seeks an interconnection to the transmission system and the interconnection request is governed by rules and regulations under the exclusive jurisdiction of the Federal Energy Regulatory Commission, the provisions of this chapter shall not apply.
  7. The rules and fees established in this chapter shall be incorporated within the applicable “Standards for Interconnection of Distributed Generation” approved by the commission.

History of Section. P.L. 2011, ch. 140, § 1; P.L. 2011, ch. 144, § 1.

39-26.3-4. Study cost fees.

  1. After thirty (30) days from the enactment of this chapter until the end of calendar year 2012, the feasibility study fee shall be in accordance with the schedule set forth below:
    1. Residential applicants for interconnections of UL 1741.1 approved renewable distributed generation that is twenty-five kilowatts (25 KW) or less: zero dollars ($0).
    2. Residential applicants for interconnections of UL 1741.1 approved renewable distributed generation that is greater than twenty-five kilowatts (25 KW): fifty dollars ($50.00).
    3. Nonresidential applicants for interconnections of UL 1741.1 approved renewable distributed generation that is one hundred kilowatts (100 KW) or less: one hundred dollars ($100).
    4. Nonresidential applicants for interconnections of UL 1741.1 approved renewable distributed generation that is two hundred fifty kilowatts (250 KW) or less: three hundred dollars ($300).
    5. Nonresidential applicants for interconnections of renewable distributed generation that is greater than two hundred fifty kilowatts (250 KW), up to one megawatt (1 MW): one thousand dollars ($1,000).
    6. Nonresidential applicants for interconnections of renewable distributed generation greater than one megawatt (1 MW): two thousand five hundred dollars ($2,500).

      Beginning January 1, 2013, and for every year thereafter, the commission shall set a new fee schedule that is no less than what is specified herein. The purpose of the fee schedule is to provide a disincentive to applicants contemplating a renewable distributed-generation project from requesting order of magnitude estimates unless they are serious about pursuing such projects.

  2. After thirty (30) days from the enactment of this chapter until the end of calendar year 2012, the impact study fee shall be in accordance with the schedule set forth below:
    1. Residential applicants for interconnections of UL 1741.1 approved renewable distributed generation that is twenty-five kilowatts (25 KW) or less: zero dollars ($0).
    2. Residential applicants for interconnections of UL 1741.1 approved renewable distributed generation that is greater than twenty-five kilowatts (25 KW): one hundred dollars ($100).
    3. Nonresidential applicants for interconnections of UL 1741.1 approved renewable distributed generation that is one hundred kilowatts (100 KW) or less: five hundred dollars ($500)
    4. Nonresidential applicants for interconnections of UL 1741.1 approved renewable distributed generation that is two hundred fifty kilowatts (250 KW) or less: one thousand five hundred dollars ($1,500).
    5. Nonresidential applicants for interconnections of renewable distributed generation that is greater than two hundred fifty kilowatts (250 KW), up to one megawatt (1 MW): five thousand dollars ($5,000).
    6. Nonresidential applicants for interconnections of renewable distributed generation greater than one megawatt (1 MW): ten thousand dollars ($10,000).

      Beginning January 1, 2013, and for every year thereafter, the commission shall set a new fee schedule that is no less than what is specified herein. The purpose of the impact study fee schedule is to assure that an applicant is responsible for paying a reasonable amount of the cost of the study in advance of installing the distributed generation, but that the advance cost is not so high as to discourage an applicant from pursuing a project.

  3. To the extent that an impact study fee established under this section does not cover the reasonable cost of an impact study for a given nonresidential project that commences operation, the balance of these costs shall be recovered from such applicant through billings after the project is online. The electric distribution company may, at its sole election, offset net-metering credits or any standard contract payments until the full fee(s) is reimbursed, if it finds it administratively convenient to use that means of billing for the balance of the fee for a given project.

History of Section. P.L. 2011, ch. 140, § 1; P.L. 2011, ch. 144, § 1.

39-26.3-4.1. Interconnection standards.

  1. The electric distribution company may only charge an interconnecting, renewable energy customer for any system modifications to its electric power system specifically necessary for and directly related to the interconnection.
  2. If the public utilities commission determines that a specific system modification benefiting other customers has been accelerated due to an interconnection request, it may order the interconnecting customer to fund the modification subject to repayment of the depreciated value of the modification as of the time the modification would have been necessary as determined by the public utilities commission. Any system modifications benefiting other customers shall be included in rates as determined by the public utilities commission.
  3. If an interconnecting, renewable energy customer is required to pay for system modifications and a subsequent renewable energy or commercial customer relies on those modifications to connect to the distribution system within ten (10) years of the earlier interconnecting, renewable energy customer’s payment, the subsequent customer will make a prorated contribution toward the cost of the system modifications that will be credited to the earlier interconnecting, renewable energy customer as determined by the public utilities commission.
  4. An electric distribution company shall acknowledge to the interconnecting, renewable energy customer receipt of an application to initiate the interconnection process within three (3) business days of receipt. The electric distribution company shall notify the interconnecting, renewable energy customer in writing within ten (10) business days of receipt that the application is or is not complete and, if not, advise what is missing. Any disputes regarding whether and when an application to initiate the interconnection process is complete shall be resolved expeditiously at the public utilities commission. The maximum time allowed between the date of the completed application and delivery of an executable interconnection service agreement shall be one hundred seventy-five (175) calendar days or two hundred (200) calendar days if a detailed study is required. All electric distribution company system modifications must be completed by the date which is the later of: (1) No longer than two hundred seventy (270) calendar days, or three hundred sixty (360) calendar days if substation work is necessary, from the date of the electric distribution company’s receipt of the interconnecting, renewable energy customer’s executed interconnection service agreement; or (2) The interconnecting, renewable energy customer’s agreed-upon extension of the time between the execution of the interconnection service agreement and interconnection as set forth in writing. All deadlines herein are subject to all payments being made in accordance with the distributed-generation interconnection tariff on file with the public utilities commission and the interconnection service agreement. These system modification deadlines cannot be extended due to customer delays in providing required information, all of which must be requested and obtained before completion of the impact study. The deadlines for completion of system modifications will be extended only to the extent of events that are clearly not under the control of the electric distribution company, such as extended prohibitive weather, union work stoppage or force majeure, or third-party delays, including, without limitation, delays due to ISO-NE requirements not attributable to electric distribution company actions, and that cannot be resolved despite commercially reasonable efforts. The electric distribution company shall notify the customer of the start of any claimed deadline extension as soon as practicable, its cause and when it concludes, all in writing. Any actual damages that a court of competent jurisdiction orders the electric distribution company to pay to an interconnecting, renewable energy customer as a direct result of the electric distribution company’s failure to comply with the requirements of this subsection shall be payable by its shareholders and may not be recovered from customers, provided that the total amount of damages awarded for any and all such claims shall not exceed, in the aggregate, an amount equal to the amount of the incentive the electric distribution company would have earned as provided for in §§ 39-26.6-12(j)(3) and 39-26.1-4 in the year in which the system modifications were required to be completed. In no event shall the electric distribution company be liable to the interconnecting, renewable energy customer for any indirect, incidental, special, consequential, or punitive damages of any kind whatsoever as a result of the electric distribution company’s failure to comply with this section.
  5. On or before September 1, 2017, the public utilities commission shall initiate a docket to establish metrics for the electric distribution company’s performance in meeting the time frames set forth herein and in the distributed-generation interconnection standards approved by the public utilities commission. The public utilities commission may include incentives and penalties in the performance metrics.
  6. The proposed interconnection of any new renewable energy resource that replaces the same existing renewable energy resource of the same or less nameplate capacity that has been in operation in the twelve (12) months preceding notification of the replacement shall be subject to a sixty-day (60) review. The purpose of such sixty-day (60) review is to allow the electric distribution company to determine whether any system modifications are required to support the interconnection of the replacement renewable energy resource. If there is a need for system modifications because of an interconnection policy change implemented by the electric distribution company, then the system modification may be included in rates as determined by the public utilities commission. If there is a need for system modifications only because of a change in the rating or utility disturbance response that adversely affects the impact of the facility on the distribution system, then the interconnecting, renewable energy customer shall be responsible for the cost of the system modifications.

History of Section. P.L. 2017, ch. 112, § 2; P.L. 2017, ch. 176, § 2.

39-26.3-5. Liberal construction of chapter required.

This chapter shall be construed liberally in aid of its policy objective.

History of Section. P.L. 2011, ch. 140, § 1; P.L. 2011, ch. 144, § 1.

39-26.3-6. Severability.

If any provision of this chapter or the application thereof to any person or circumstances is held invalid, the invalidity shall not affect other provisions or application of the chapter that can be given effect without the invalid provision or application, and to this end the provisions of this chapter are declared to be severable.

History of Section. P.L. 2011, ch. 140, § 1; P.L. 2011, ch. 144, § 1.

Chapter 26.4 Net Metering

39-26.4-1. Purpose.

The purpose of this chapter is to facilitate and promote installation of customer-sited, grid-connected generation of renewable energy; to support and encourage customer development of renewable generation systems; to reduce environmental impacts; to reduce carbon emissions that contribute to climate change by encouraging the local siting of renewable energy projects; to diversify the state’s energy generation sources; to stimulate economic development; to improve distribution system resilience and reliability; and to reduce distribution system costs.

History of Section. P.L. 2011, ch. 134, § 2; P.L. 2011, ch. 147, § 2.

Law Reviews.

Alyssa Lauren Lemire, Comment: Raising the Meter in Rhode Island: A Better Approach to Rhode Island’s Net Metering Laws, 25 Roger Williams U. L. Rev. 470 (2020).

39-26.4-2. Definitions.

Terms not defined in this section herein shall have the same meaning as contained in chapter 26 of this title. When used in this chapter:

  1. “Community remote net-metering system” means a facility generating electricity using an eligible net-metering resource that allocates net-metering credits to a minimum of one account for a system associated with low- or moderate-income housing eligible credit recipients, or three (3) eligible credit-recipient customer accounts, provided that no more than fifty percent (50%) of the credits produced by the system are allocated to one eligible credit recipient, and provided further at least fifty percent (50%) of the credits produced by the system are allocated to the remaining eligible credit recipients in an amount not to exceed that which is produced annually by twenty-five kilowatt (25 KW) AC capacity. The community remote net-metering system may transfer credits to eligible credit recipients in an amount that is equal to or less than the sum of the usage of the eligible credit recipient accounts measured by the three-year (3) average annual consumption of energy over the previous three (3) years. A projected annual consumption of energy may be used until the actual three-year (3) average annual consumption of energy over the previous three (3) years at the eligible credit recipient accounts becomes available for use in determining eligibility of the generating system. The community remote net-metering system may be owned by the same entity that is the customer of record on the net-metered account or may be owned by a third party.
  2. “Electric distribution company” shall have the same meaning as § 39-1-2 , but shall not include Block Island Power Company or Pascoag Utility District, each of whom shall be required to offer net metering to customers through a tariff approved by the public utilities commission after a public hearing. Any tariff or policy on file with the public utilities commission on the date of passage of this chapter shall remain in effect until the commission approves a new tariff.
  3. “Eligible credit recipient” means one of the following eligible recipients in the electric distribution company’s service territory whose electric service account or accounts may receive net-metering credits from a community remote net-metering system. Eligible credit recipients include the following definitions:
    1. Residential accounts in good standing.
    2. “Low- or moderate-income housing eligible credit recipient” means an electric service account or accounts in good standing associated with any housing development or developments owned or operated by a public agency, nonprofit organization, limited-equity housing cooperative, or private developer that receives assistance under any federal, state, or municipal government program to assist the construction or rehabilitation of housing affordable to low- or moderate-income households, as defined in the applicable federal or state statute, or local ordinance, encumbered by a deed restriction or other covenant recorded in the land records of the municipality in which the housing is located, that:
      1. Restricts occupancy of no less than fifty percent (50%) of the housing to households with a gross, annual income that does not exceed eighty percent (80%) of the area median income as defined annually by the United States Department of Housing and Urban Development (HUD);
      2. Restricts the monthly rent, including a utility allowance, that may be charged to residents, to an amount that does not exceed thirty percent (30%) of the gross, monthly income of a household earning eighty percent (80%) of the area median income as defined annually by HUD;
      3. Has an original term of not less than thirty (30) years from initial occupancy.

        Electric service account or accounts in good standing associated with housing developments that are under common ownership or control may be considered a single low- or moderate-income housing eligible credit recipient for purposes of this section. The value of the credits shall be used to provide benefits to tenants.

    3. “Educational institutions” means public and private schools at the primary, secondary, and postsecondary levels.
  4. “Eligible net-metering resource” means eligible renewable energy resource, as defined in § 39-26-5 including biogas created as a result of anaerobic digestion, but, specifically excluding all other listed eligible biomass fuels.
  5. “Eligible net-metering system” means a facility generating electricity using an eligible net-metering resource that is reasonably designed and sized to annually produce electricity in an amount that is equal to, or less than, the renewable self-generator’s usage at the eligible net-metering system site measured by the three-year (3) average annual consumption of energy over the previous three (3) years at the electric distribution account(s) located at the eligible net-metering system site. A projected annual consumption of energy may be used until the actual three-year (3) average annual consumption of energy over the previous three (3) years at the electric distribution account(s) located at the eligible net-metering system site becomes available for use in determining eligibility of the generating system. The eligible net-metering system may be owned by the same entity that is the customer of record on the net-metered accounts or may be owned by a third party that is not the customer of record at the eligible net-metering system site and which may offer a third-party, net-metering financing arrangement or net-metering financing arrangement, as applicable. Notwithstanding any other provisions of this chapter, any eligible net-metering resource: (i) Owned by a public entity, educational institution, hospital, nonprofit, or multi-municipal collaborative or (ii) Owned and operated by a renewable-generation developer on behalf of a public entity, educational institution, hospital, nonprofit, or multi-municipal collaborative through a net-metering financing arrangement shall be treated as an eligible net-metering system and all accounts designated by the public entity, educational institution, hospital, nonprofit,  or multi-municipal collaborative for net metering shall be treated as accounts eligible for net metering within an eligible net-metering system site.
  6. “Eligible net-metering system site” means the site where the eligible net-metering system or community remote net-metering system is located or is part of the same campus or complex of sites contiguous to one another and the site where the eligible net-metering system or community remote net-metering system is located or a farm in which the eligible net-metering system or community remote net-metering system is located. Except for an eligible net-metering system owned by or operated on behalf of a public entity, educational institution, hospital, nonprofit, or multi-municipal collaborative through a net-metering financing arrangement, the purpose of this definition is to reasonably assure that energy generated by the eligible net-metering system is consumed by net-metered electric service account(s) that are actually located in the same geographical location as the eligible net-metering system. All energy generated from any eligible net-metering system is, and will be considered, consumed at the meter where the renewable energy resource is interconnected for valuation purposes. Except for an eligible net-metering system owned by, or operated on behalf of, a public entity, educational institution, hospital, nonprofit, or multi-municipal collaborative through a net-metering financing arrangement, or except for a community remote net-metering system, all of the net-metered accounts at the eligible net-metering system site must be the accounts of the same customer of record and customers are not permitted to enter into agreements or arrangements to change the name on accounts for the purpose of artificially expanding the eligible net-metering system site to contiguous sites in an attempt to avoid this restriction. However, a property owner may change the nature of the metered service at the accounts at the site to be master metered in the owner’s name, or become the customer of record for each of the accounts, provided that the owner becoming the customer of record actually owns the property at which the account is located. As long as the net-metered accounts meet the requirements set forth in this definition, there is no limit on the number of accounts that may be net metered within the eligible net-metering system site.
  7. “Excess renewable net-metering credit” means a credit that applies to an eligible net-metering system or community remote net-metering system for that portion of the production of electrical energy beyond one hundred percent (100%) and no greater than one hundred twenty-five percent (125%) of the renewable self-generator’s own consumption at the eligible net-metering system site or the sum of the usage of the eligible credit recipient accounts associated with the community remote net-metering system during the applicable billing period. Such excess renewable net-metering credit shall be equal to the electric distribution company’s avoided cost rate, which is hereby declared to be the electric distribution company’s standard-offer service kilowatt hour (KWh) charge for the rate class and time-of-use billing period (if applicable) applicable to the customer of record for the eligible net-metering system or applicable to the customer of record for the community remote net-metering system. The commission shall have the authority to make determinations as to the applicability of this credit to specific generation facilities to the extent there is any uncertainty or disagreement.
  8. “Farm” shall be defined in accordance with § 44-27-2 , except that all buildings associated with the farm shall be eligible for net-metering credits as long as: (i) The buildings are owned by the same entity operating the farm or persons associated with operating the farm; and (ii) The buildings are on the same farmland as the project on either a tract of land contiguous with, or reasonably proximate to, such farmland or across a public way from such farmland.
  9. “Hospital” means and shall be defined and established as set forth in chapter 17 of title 23.
  10. “Multi-municipal collaborative” means a group of towns and/or cities that enter into an agreement for the purpose of co-owning a renewable-generation facility or entering into a financing arrangement pursuant to subsection (14).
  11. “Municipality” means any Rhode Island town or city, including any agency or instrumentality thereof, with the powers set forth in title 45.
  12. “Net metering” means using electrical energy generated by an eligible net-metering system for the purpose of self-supplying electrical energy and power at the eligible net-metering system site, or with respect to a community remote net-metering system, for the purpose of generating net-metering credits to be applied to the electric bills of the eligible credit recipients associated with the community net-metering system. The amount so generated will thereby offset consumption at the eligible net-metering system site through the netting process established in this chapter, or with respect to a community remote net-metering system, the amounts generated in excess of that amount will result in credits being applied to the eligible credit-recipient accounts associated with the community remote net-metering system.
  13. “Net-metering customer” means a customer of the electric distribution company receiving and being billed for distribution service whose distribution account(s) are being net metered.
  14. “Net-metering financing arrangement” means arrangements entered into by a public entity, educational institution, hospital, nonprofit, or multi-municipal collaborative with a private entity to facilitate the financing and operation of a net-metering resource, in which the private entity owns and operates an eligible net-metering resource on behalf of a public entity, educational institution, hospital, nonprofit, or multi-municipal collaborative, where: (i) The eligible net-metering resource is located on property owned or controlled by the public entity, educational institution, hospital, or one of the municipalities, as applicable; and (ii) The production from the eligible net-metering resource and primary compensation paid by the public entity, educational institution, hospital, nonprofit, or multi-municipal collaborative to the private entity for such production is directly tied to the consumption of electricity occurring at the designated net-metered accounts.
  15. “Nonprofit” means a nonprofit corporation as defined and established through chapter 6 of title 7, and shall include religious organizations that are tax exempt pursuant to 26 U.S.C. § 501(d).
  16. “Person” means an individual, firm, corporation, association, partnership, farm, town or city of the state of Rhode Island, multi-municipal collaborative, or the state of Rhode Island or any department of the state government, governmental agency, or public instrumentality of the state.
  17. “Project” means a distinct installation of an eligible net-metering system or a community remote net-metering system. An installation will be considered distinct if it is installed in a different location, or at a different time, or involves a different type of renewable energy.
  18. “Public entity” means the federal government, the state of Rhode Island, municipalities, wastewater treatment facilities, public transit agencies, or any water distributing plant or system employed for the distribution of water to the consuming public within this state including the water supply board of the city of Providence.
  19. “Renewable net-metering credit” means a credit that applies to an eligible net-metering system or a community remote net-metering system up to one hundred percent (100%) of either the renewable self-generator’s usage at the eligible net-metering system site or the sum of the usage of the eligible credit-recipient accounts associated with the community remote net-metering system over the applicable billing period. This credit shall be equal to the total kilowatt hours of electrical energy generated up to the amount consumed on-site, and/or generated up to the sum of the eligible credit-recipient account usage during the billing period multiplied by the sum of the distribution company’s:
    1. Standard-offer service kilowatt-hour charge for the rate class applicable to the net-metering customer, except that for remote public entity and multi-municipality collaborative net-metering systems that submit an application for an interconnection study on or after July 1, 2017, and community remote net-metering systems, the standard-offer service kilowatt-hour charge shall be net of the renewable energy standard charge or credit;
    2. Distribution kilowatt-hour charge;
    3. Transmission kilowatt-hour charge; and
    4. Transition kilowatt-hour charge.

      Notwithstanding the foregoing, except for systems that have requested an interconnection study for which payment has been received by the distribution company, or if an interconnection study is not required, a completed and paid interconnection application, by December 31, 2018, the renewable net-metering credit for all remote public entity and multi-municipal collaborative net-metering systems shall not include the distribution kilowatt-hour charge commencing on January 1, 2050.

  20. “Renewable self-generator” means an electric distribution service customer of record for the eligible net-metering system or community remote net-metering system at the eligible net-metering system site which system is primarily designed to produce electrical energy for consumption by that same customer at its distribution service account(s), and/or, with respect to community remote net-metering systems, electrical energy which generates net-metering credits to be applied to offset the eligible credit-recipient account usage.
  21. “Third party” means and includes any person or entity, other than the renewable self-generator, who or that owns or operates the eligible net-metering system or community remote net-metering system on the eligible net-metering system site for the benefit of the renewable self-generator.
  22. “Third-party, net-metering financing arrangement” means the financing of eligible net-metering systems or community remote net-metering systems through lease arrangements or power/credit purchase agreements between a third party and renewable self-generator, except for those entities under a public entity net-metering financing arrangement. A third party engaged in providing financing arrangements related to such net-metering systems with a public or private entity is not a public utility as defined in § 39-1-2 .

History of Section. P.L. 2011, ch. 134, § 2; P.L. 2011, ch. 147, § 2; P.L. 2014, ch. 493, § 1; P.L. 2014, ch. 524, § 1; P.L. 2016, ch. 149, § 3; P.L. 2016, ch. 163, § 3; P.L. 2017, ch. 188, § 1; P.L. 2017, ch. 306, § 1; P.L. 2017, ch. 451, § 17; P.L. 2020, ch. 79, art. 1, § 19.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

Law Reviews.

Alyssa Lauren Lemire, Comment: Raising the Meter in Rhode Island: A Better Approach to Rhode Island’s Net Metering Laws, 25 Roger Williams U. L. Rev. 470 (2020).

39-26.4-3. Net metering.

  1. The following policies regarding net metering of electricity from eligible net-metering systems and community remote net-metering systems and regarding any person that is a renewable self-generator shall apply:
      1. The maximum allowable capacity for eligible net-metering systems, based on nameplate capacity, shall be ten megawatts (10 MW), effective sixty (60) days after passage. The aggregate amount of net metering in the Block Island Utility District doing business as Block Island Power Company and the Pascoag Utility District shall not exceed a maximum percentage of peak load for each utility district as set by the utility district based on its operational characteristics, subject to commission approval; and
      2. Through December 31, 2018, the maximum aggregate amount of community remote net-metering systems built shall be thirty megawatts (30 MW). Any of the unused MW amount after December 31, 2018, shall remain available to community remote net-metering systems until the MW aggregate amount is interconnected. After December 31, 2018, the commission may expand or modify the aggregate amount after a public hearing upon petition by the office of energy resources. The commission shall determine within six (6) months of such petition being docketed by the commission whether the benefits of the proposed expansion exceed the cost. This aggregate amount shall not apply to any net-metering financing arrangement involving public entity facilities, multi-municipal collaborative facilities, educational institutions, the federal government, hospitals, or nonprofits. By June 30, 2018, the commission shall conduct a study examining the cost and benefit to all customers of the inclusion of the distribution charge as a part of the net-metering calculation.
    1. For ease of administering net-metered accounts and stabilizing net-metered account bills, the electric distribution company may elect (but is not required) to estimate for any twelve-month (12) period:

      (i) The production from the eligible net-metering system or community remote net-metering system; and

      (ii) Aggregate consumption of the net-metered accounts at the eligible net-metering system site or the sum of the consumption of the eligible credit-recipient accounts associated with the community remote net-metering system, and establish a monthly billing plan that reflects the expected credits that would be applied to the net-metered accounts over twelve (12) months. The billing plan would be designed to even out monthly billings over twelve (12) months, regardless of actual production and usage. If such election is made by the electric distribution company, the electric distribution company would reconcile payments and credits under the billing plan to actual production and consumption at the end of the twelve-month (12) period and apply any credits or charges to the net-metered accounts for any positive or negative difference, as applicable. Should there be a material change in circumstances at the eligible net-metering system site or associated accounts during the twelve-month (12) period, the estimates and credits may be adjusted by the electric distribution company during the reconciliation period. The electric distribution company also may elect (but is not required) to issue checks to any net-metering customer in lieu of billing credits or carry-forward credits or charges to the next billing period. For residential-eligible net-metering systems and community remote net-metering systems twenty-five kilowatts (25 KW) or smaller, the electric distribution company, at its option, may administer renewable net-metering credits month to month allowing unused credits to carry forward into the following billing period.

    2. If the electricity generated by an eligible net-metering system or community remote net-metering system during a billing period is equal to, or less than, the net-metering customer’s usage at the eligible net-metering system site or the sum of the usage of the eligible credit-recipient accounts associated with the community remote net-metering system during the billing period, the customer shall receive renewable net-metering credits, that shall be applied to offset the net-metering customer’s usage on accounts at the eligible net-metering system site, or shall be used to credit the eligible credit-recipient’s electric account.
    3. If the electricity generated by an eligible net-metering system or community remote net-metering system during a billing period is greater than the net-metering customer’s usage on accounts at the eligible net-metering system site or the sum of the usage of the eligible credit-recipient accounts associated with the community remote net-metering system during the billing period, the customer shall be paid by excess renewable net-metering credits for the excess electricity generated up to an additional twenty-five percent (25%) beyond the net-metering customer’s usage at the eligible net-metering system site, or the sum of the usage of the eligible credit-recipient accounts associated with the community remote net-metering system during the billing period; unless the electric distribution company and net-metering customer have agreed to a billing plan pursuant to subsection (a)(2).
    4. The rates applicable to any net-metered account shall be the same as those that apply to the rate classification that would be applicable to such account in the absence of net metering, including customer and demand charges, and no other charges may be imposed to offset net-metering credits.
  2. The commission shall exempt electric distribution company customer accounts associated with an eligible net-metering system from back-up or standby rates commensurate with the size of the eligible net-metering system, provided that any revenue shortfall caused by any such exemption shall be fully recovered by the electric distribution company through rates.
  3. Any prudent and reasonable costs incurred by the electric distribution company pursuant to achieving compliance with subsection (a) and the annual amount of any renewable net-metering credits or excess renewable net-metering credits provided to accounts associated with eligible net-metering systems or community remote net-metering systems, shall be aggregated by the distribution company and billed to all distribution customers on an annual basis through a uniform, per-kilowatt-hour (KWh) surcharge embedded in the distribution component of the rates reflected on customer bills.
  4. The billing process set out in this section shall be applicable to electric distribution companies thirty (30) days after the enactment of this chapter.

History of Section. P.L. 2011, ch. 134, § 2; P.L. 2011, ch. 147, § 2; P.L. 2014, ch. 200, § 3; P.L. 2014, ch. 216, § 3; P.L. 2016, ch. 149, § 3; P.L. 2016, ch. 163, § 3; P.L. 2017, ch. 155, § 1; P.L. 2017, ch. 164, § 1; P.L. 2017, ch. 188, § 1; P.L. 2017, ch. 306, § 1; P.L. 2021, ch. 315, § 1, effective July 9, 2021; P.L. 2021, ch. 316, § 1, effective July 9, 2021.

Compiler’s Notes.

The language “sixty (60) days after passage” in the first sentence of subsection (a)(1)(i) was added by P.L. 2016, ch. 149, § 3 and P.L. 2016, ch. 163, § 3, which were enacted on June 27, 2016.

P.L. 2021, ch. 315, § 1, and P.L. 2021, ch. 316, § 1 enacted nearly identical amendments to this section.

Law Reviews.

Alyssa Lauren Lemire, Comment: Raising the Meter in Rhode Island: A Better Approach to Rhode Island’s Net Metering Laws, 25 Roger Williams U. L. Rev. 470 (2020).

39-26.4-4. Liberal construction of chapter required.

This chapter shall be construed liberally in aid of its declared purposes.

History of Section. P.L. 2011, ch. 134, § 2; P.L. 2011, ch. 147, § 2.

39-26.4-5. Severability.

If any provision of this chapter or the application thereof to any person or circumstances is held invalid, the invalidity shall not affect other provisions or applications of the chapter that can be given effect without the invalid provision or application, and to this end the provisions of this chapter are declared to be severable.

History of Section. P.L. 2011, ch. 134, § 2; P.L. 2011, ch. 147, § 2; P.L. 2020, ch. 79, art. 1, § 19.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

Chapter 26.5 Property Assessed Clean Energy Program

39-26.5-1. Legislative findings.

It is hereby found and declared:

  1. Investing in energy efficiency and renewable energy improvements is financially beneficial over time, as well as good for the environment;
  2. Upfront costs are a barrier to investments in major energy improvements for both commercial and residential property owners;
  3. There are few financing options available that combine easy qualification, an attractive interest rate, and a relatively long repayment term;
  4. Property-Assessed Clean Energy, hereinafter referred to as PACE, is a voluntary financing mechanism that allows both residential and commercial property owners to access affordable, long-term financing for renewable energy and energy-efficiency upgrades including, but not limited to, system-reliability upgrades, alternative fuel infrastructure upgrades, and other eligible environmental health and environmental safety upgrades on their property;
  5. PACE financing offers incremental, special-assessment payments that are low and fixed for up to twenty (20) years, with no upfront costs; the PACE special-assessment fees transfer to the new owner when a property is sold, or the assessment obligation can be paid in full at transfer; and electricity and fuel bills are lower than they would be without the improvements; and
  6. PACE financing will create a means for Rhode Island cities and towns to provide a mechanism to increase community sustainability, greenhouse gas emissions reductions, and meet other energy goals and will also provide a valuable service to the citizens of their communities.

History of Section. P.L. 2013, ch. 271, § 1; P.L. 2013, ch. 361, § 1; P.L. 2015, ch. 141, art. 14, § 9.

39-26.5-2. Definitions.

As used in this chapter, the following definitions apply:

  1. “Commercial property” means a property operated for commercial purposes, or a residential property that contains five (5) or more housing units.
  2. “Distributed-generation system” means an electrical-generation facility located in the electric distribution company’s load zone with a nameplate capacity no greater than five megawatts (5 MW), using eligible renewable energy resources as defined by § 39-26-5 , including biogas created as a result of anaerobic digestion, but, specifically excluding all other listed eligible biomass fuels, and connected to an electrical power system owned, controlled, or operated by the electric distribution company.
  3. “Dwelling” means a residential structure or mobile home that contains one to four (4) family housing units, or individual units of condominiums or cooperatives.
  4. “Eligible net-metering system” means a facility generating electricity as defined in § 39-26.4-2 .
  5. “Eligible renewable energy resources” means resources as defined in § 39-26-5 .
  6. “Energy-efficiency projects” means those projects that are eligible under § 39-1-27.7 or projects that have been defined as eligible in the PACE rules and regulations.
  7. “Institution” means a private entity or quasi-state agency.
  8. “Loan loss reserve fund” or “(LRF)” means funds set aside to cover losses in the event of loan defaults.
  9. “Municipality” or “towns and cities” means any Rhode Island town or city with powers set forth in title 45.
  10. “Net metering” means using electricity as defined in § 39-26.4-2 .
  11. “PACE assessment” or “assessment” means the special assessment placed on a PACE property owner’s property tax or other municipal assessment bill in accordance with this chapter, to be collected by or on behalf of the PACE municipality in which that PACE property is located and remitted to the Rhode Island infrastructure bank or to the lender that has financed that PACE project. The PACE assessment shall be owed by the current owner of the related PACE property as of the time each PACE assessment comes due. In the event of a transfer of ownership, all PACE assessments coming due after the date of the transfer, by foreclosure or otherwise, shall be owed by the transferee.
  12. “PACE lien” means the non-accelerating lien placed on a PACE property in accordance with the rules and regulations promulgated by the Rhode Island infrastructure bank pursuant to this chapter, in order to secure the repayment of a PACE assessment made in connection with that PACE property and to secure the repayment of each PACE assessment to be made by that PACE property owner as each assessment comes due.
  13. “PACE municipality” means a municipality voluntarily designated by its city or town council as a property-assessed clean energy municipality.
  14. “PACE project” or “project” means a distinct installation of an eligible energy-efficiency system, renewable energy net-metering system, distributed-generation system, alternative fuel infrastructure upgrade, and/or other eligible environmental health and environmental safety upgrades.
  15. “PACE property” or “property” means any residential property or commercial property that is the subject of an approved application for a PACE project filed pursuant to this chapter.
  16. “Past-due balances” means the sum of the due and unpaid assessments on a PACE property as of the time the ownership of that PACE property is transferred. “Past-due balances” does not mean the unaccelerated balance of the PACE loan at the time that property is transferred.
  17. “Property-assessed clean energy” or “PACE” is a voluntary financing mechanism that allows both residential and commercial property owners to access affordable, long-term financing for energy upgrades, and other eligible environmental health and environmental safety upgrades on their property.
  18. “Rhode Island infrastructure bank” means the Rhode Island infrastructure bank (“RIIB”). For the purposes of this chapter, Rhode Island infrastructure bank shall include other related state agencies and/or third-party administrators, as may be engaged by the Rhode Island infrastructure bank for the purposes of providing the services envisioned by the rules and regulations promulgated in accordance with § 39-26.5-11 .

History of Section. P.L. 2013, ch. 271, § 1; P.L. 2013, ch. 361, § 1; P.L. 2015, ch. 141, art. 14, § 9; P.L. 2017, ch. 480, § 3.

39-26.5-3. Property-Assessed Clean Energy Municipality.

A town or city council by resolution may designate the municipality as a “PACE municipality.”

History of Section. P.L. 2013, ch. 271, § 1; P.L. 2013, ch. 361, § 1; P.L. 2015, ch. 141, art. 14, § 9.

39-26.5-4. [Repealed.]

History of Section. P.L. 2013, ch. 271, § 1; P.L. 2013, ch. 361, § 1; Repealed by P.L. 2015, ch. 141, art. 14, § 10, effective June 30, 2015.

Compiler’s Notes.

Former § 39-26.5-4 concerned written agreements, consent of dwelling owners, and energy savings analysis.

39-26.5-4.1. Financing agreements — PACE assessments — PACE liens.

  1. The Rhode Island infrastructure bank or a third-party capital provider may enter into a financing agreement with a qualifying PACE property owner. After such agreement is entered into, and upon notice from the Rhode Island infrastructure bank, the PACE municipality shall: (i) Place a caveat on the land records indicating that a PACE assessment and lien is anticipated upon completion of the PACE project for such property; or (ii) At the direction of the Rhode Island infrastructure bank, levy the PACE assessment and file a lien on the land records on the estimated costs of the PACE project prior to the completion or upon the completion of said PACE project.
  2. PACE assessments levied pursuant to this chapter and the interest, fees, and any penalties thereon shall constitute a lien against the qualifying PACE property on which they are made until they are paid. The lien shall be collected in the same manner as the property taxes of the PACE municipality on real property, including, in the event of default or delinquency, with respect to any penalties, fees, and remedies. Each lien may be recorded and released in the manner provided for property tax liens and if the property is commercial property as defined herein, it shall be subject to the consent of existing mortgage holders. The PACE lien shall take precedence over all other liens or encumbrances except a lien for taxes of the municipality on real property, or if the subject property is residential property as defined herein, the PACE lien shall be subject to any prior recorded mortgage which lien for taxes or pre-recorded residential mortgage shall have priority over the PACE-assessment lien. To the extent PACE assessments are paid in installments and any such installment is not paid when due, the PACE-assessment lien may be foreclosed to the extent of any unpaid installment payments and any penalties, interest, and fees related thereto. In the event the PACE-assessment lien is foreclosed, the PACE-assessment lien shall survive the judgment of foreclosure to the extent of any unpaid installment payments of the PACE assessment secured by the PACE-assessment lien that were not the subject of such judgment.
  3. Any PACE municipality may assign to the Rhode Island infrastructure bank any and all liens filed by the PACE municipality, as provided in the written agreement between the participating municipality and the Rhode Island infrastructure bank. The Rhode Island infrastructure bank may sell or assign, for consideration, any and all liens received from the participating municipality. The consideration received by the Rhode Island infrastructure bank shall be negotiated between the Rhode Island infrastructure bank and the assignee. The assignee or assignees of the liens shall have and possess the same powers and rights at law or in equity as the Rhode Island infrastructure bank and the participating municipality and its tax collector would have had if the lien had not been assigned with regard to the precedence and priority of the lien, the accrual of interest, and the fees and expenses of collection. The assignee shall have the same rights to enforce the liens as any private party holding a lien on real property, including, but not limited to, foreclosure and a suit on the debt. Costs and reasonable attorney’s fees incurred by the assignee as a result of any foreclosure action or other legal proceeding brought pursuant to this section and directly related to the proceeding shall be taxed in the proceeding against each person having title to any property subject to the proceedings. The costs and fees may be collected by the assignee at any time after demand for payment has been made by the assignee.

History of Section. P.L. 2015, ch. 141, art. 14, § 9; P.L. 2017, ch. 480, § 3.

39-26.5-5. Rights of PACE property owners.

A PACE property owner may enter into a contract for the installation or construction of a project relating to renewable energy as defined in § 39-26-5 , or relating to energy efficiency as defined in § 39-1-27.7 or as defined by the Rhode Island infrastructure bank pursuant to regulations authorized under this chapter.

History of Section. P.L. 2013, ch. 271, § 1; P.L. 2013, ch. 361, § 1; P.L. 2015, ch. 141, art. 14, § 9.

39-26.5-6. Priority of PACE lien.

  1. A PACE lien on a residential property shall be: subordinate to all liens on the residential property in existence at the time the residential PACE lien is filed; subordinate to a first mortgage on the residential property recorded after the PACE lien is filed; and superior to any other lien on the residential property recorded after the PACE lien is filed. This subsection shall not affect the status or priority of any other municipal or statutory lien.
  2. At the time of a transfer of property ownership of a residential property, including by foreclosure, the past-due balances of any special assessment under this chapter shall be due for payment. In the event of a foreclosure action, the past-due balances shall include all payments on a PACE assessment that are due and unpaid as of the date of the foreclosure. Unless otherwise agreed by the PACE lender, all payments on the PACE assessment that become due after the date of transfer by foreclosure or otherwise shall continue to be secured by a PACE lien on the PACE property and shall be the responsibility of the transferee.
  3. A PACE lien on a commercial property shall be: senior to all liens on the commercial property in existence at the time the PACE lien is filed, subject to the consent of the existing mortgage holders on the property; senior to all liens filed or recorded after the time the PACE lien is created; but junior to a municipal tax lien.
  4. At the time of a transfer of property ownership of a commercial property, including by tax sale, in accordance with § 44-9-32 , or foreclosure, the past-due balances of any PACE assessment under this chapter shall be due for payment. Unless otherwise agreed by the PACE lender, all payments of PACE assessments that become due after the date of transfer by tax sale, in accordance with § 44-9-32 , or foreclosure, or otherwise shall be secured by a PACE lien on the PACE property and shall be the responsibility of the transferee.

History of Section. P.L. 2013, ch. 271, § 1; P.L. 2013, ch. 361, § 1; P.L. 2015, ch. 141, art. 14, § 9; P.L. 2017, ch. 184, § 1; P.L. 2017, ch. 261, § 1; P.L. 2017, ch. 480, § 3.

39-26.5-7. Administration of PACE — Loan loss reserve fund.

  1. The Rhode Island infrastructure bank is hereby authorized to create, set up on its books, and administer one or more PACE funds for the purpose of providing financial assistance to residential and commercial property owners for PACE projects. Additionally, the Rhode Island infrastructure bank may enter into an agreement, with one or more approved institutions, to create one or more loan loss reserve funds (LRF) or other financing mechanisms to provide financial incentives or additional security for PACE projects.
  2. In the event that there is a foreclosure of a PACE property and the proceeds resulting from such a foreclosure are insufficient to pay the past-due balances on the associated PACE assessment, after all superior liens have been satisfied, payment from the LRF shall be made in the amount of the past-due balances on the PACE assessment. The LRF shall be administered by the Rhode Island infrastructure bank or by the institution selected by the Rhode Island infrastructure bank; in the latter case the Rhode Island infrastructure bank shall provide oversight of the LRF.

History of Section. P.L. 2013, ch. 271, § 1; P.L. 2013, ch. 361, § 1; P.L. 2015, ch. 141, art. 14, § 9; P.L. 2020, ch. 79, art. 1, § 20.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

39-26.5-8. Assistance to municipalities.

The Rhode Island infrastructure bank shall:

  1. Publish on its website a list of the types of PACE-eligible energy efficiency, renewable energy, and other projects as defined in rules and regulations promulgated under § 39-26.5-11 ;
  2. Provide information concerning implementation of this chapter to each municipality that requests such information;
  3. Offer administrative and technical assistance to any PACE municipality that voluntarily participates in the PACE program; and
  4. Develop and offer informational resources to help residents make best use of the PACE program.

History of Section. P.L. 2013, ch. 271, § 1; P.L. 2013, ch. 361, § 1; P.L. 2015, ch. 141, art. 14, § 9.

39-26.5-9. Monitoring, reporting, compliance, underwriting criteria.

The Rhode Island infrastructure bank shall determine compliance with the underwriting criteria, standards, and procedures set forth in the rules and regulations promulgated in accordance with this chapter and shall include an accounting of the PACE program in the annual report due each year under § 46-12.2-24.1 . The report shall describe the implementation and operation of the PACE program including program receipts, disbursements, and earnings.

History of Section. P.L. 2013, ch. 271, § 1; P.L. 2013, ch. 361, § 1; P.L. 2015, ch. 141, art. 14, § 9.

39-26.5-10. Operations.

The PACE program shall operate in accordance with all generally accepted banking practices and real estate practices, except as specifically stated within.

History of Section. P.L. 2013, ch. 271, § 1; P.L. 2013, ch. 361, § 1.

39-26.5-11. Rules and regulations.

  1. The Rhode Island infrastructure bank shall consult with the office of energy resources to promulgate rules and regulations, in accordance with this section, and in accordance with chapter 35 of title 42. Such rules and regulations should ensure that the PACE program does not adversely affect the implementation of any other energy program in whose coordination the Rhode Island infrastructure bank or the office of energy resources is involved. Such rules and regulations shall include, but not be limited to, the following:
    1. The necessary application requirements and procedures for any residential property owner or commercial property owner seeking PACE financing;
    2. The necessary qualifications and requirements for a proposed PACE project;
    3. The underwriting criteria to be applied in determining the eligibility of properties and property owners for PACE projects; and
    4. Requirements that all existing lien holders on a property be given notice prior to a PACE assessment and lien being filed in connection with that property and that all commercial property owners seeking a commercial PACE loan receive consent of the existing mortgage holders on that property prior to being eligible.
  2. The Rhode Island infrastructure bank shall be responsible for promulgating agreements, forms, and other documents necessary for the efficient administration of the PACE program.

History of Section. P.L. 2013, ch. 271, § 1; P.L. 2013, ch. 361, § 1; P.L. 2015, ch. 141, art. 14, § 9; P.L. 2017, ch. 480, § 3.

Chapter 26.6 The Renewable Energy Growth Program

39-26.6-1. Purpose.

The purpose of this chapter is to facilitate and promote installation of grid-connected generation of renewable energy; support and encourage development of distributed renewable energy generation systems; reduce environmental impacts; reduce carbon emissions that contribute to climate change by encouraging the siting of renewable energy projects in the load zone of the electric distribution company; diversify the energy-generation sources within the load zone of the electric distribution company; stimulate economic development; improve distribution-system resilience and reliability within the load zone of the electric distribution company; and reduce distribution system costs.

History of Section. P.L. 2014, ch. 200, § 1; P.L. 2014, ch. 216, § 1.

39-26.6-2. Renewable energy growth program established.

To carry out these purposes, a tariff-based, renewable energy distributed-generation financing program, hereinafter referred to as the renewable energy growth program, is hereby established with the intention of continuing the development of renewable energy distributed generation in the load zone of the electric distribution company at reasonable cost. The program shall be designed to finance the development, construction, and operation of renewable energy distributed-generation projects over five (5) years through a performance-based incentive system that is designed to achieve specified megawatt targets at reasonable cost through competitive processes. The renewable energy growth program shall be implemented by the electric distribution company, and guided by the distributed-generation board, in consultation with the office of energy resources, subject to the review and supervision of the commission.

History of Section. P.L. 2014, ch. 200, § 1; P.L. 2014, ch. 216, § 1.

39-26.6-3. Definitions.

When used in this chapter, the following terms shall have the following meanings:

  1. “Board” shall mean the distributed-generation board as established pursuant to the provisions of § 39-26.2-10 under the title distributed generation standard contract board, but shall also fulfill the responsibilities set forth in this chapter.
  2. “Ceiling price” means the bidding price cap applicable to an enrollment for a given distributed-generation class, that shall be approved annually for each renewable energy class pursuant to the procedure established in this chapter. The ceiling price for each technology should be a price that would allow a private owner to invest in a given project at a reasonable rate of return, based on recently reported and forecast information on the cost of capital and the cost of generation equipment. The calculation of the reasonable rate of return for a project shall include, where applicable, any state or federal incentives, including, but not limited to, tax incentives.
  3. “Commercial-scale solar project” means a solar distributed-generation project with the nameplate capacity specified in § 39-26.6-7 .
  4. “Commission” means the Rhode Island public utilities commission.
  5. “Community remote distributed-generation system” means a distributed-generation facility greater than two hundred fifty kilowatt (250 KW) nameplate direct current that allocates bill credits for each kilowatt hour (KWh) generated to a minimum of three (3), eligible recipient-customer accounts, provided that no more than fifty percent (50%) of the credits produced by the system are allocated to one eligible recipient-customer account, and provided further that at least fifty percent (50%) of the credits produced by the system are allocated to eligible recipients in an amount not to exceed that which is produced annually by twenty-five kilowatt (25 KW) AC capacity. The community remote distributed-generation system may transfer credits to eligible recipient-customer accounts in an amount that is equal to, or less than, the sum of the usage of the eligible recipient-customer accounts measured by the three-year-average (3) annual consumption of energy over the previous three (3) years. A projected, annual consumption of energy may be used until the actual three-year-average (3) annual consumption of energy over the previous three (3) years at the eligible recipient-customer accounts becomes available for use in determining eligibility of the generating system. The community remote distributed-generation system may be owned by the same entity that is the customer of record on the net-metered account or may be owned by a third party.
  6. “Distributed-generation facility” means an electrical-generation facility located in the electric distribution company’s load zone with a nameplate capacity no greater than five megawatts (5 MW), using eligible renewable energy resources as defined by § 39-26-5 , including biogas created as a result of anaerobic digestion, but, specifically excluding all other listed eligible biomass fuels, and connected to an electrical power system owned, controlled, or operated by the electric distribution company. For purposes of this chapter, a distributed-generation facility must be a new resource that:
    1. Has not begun operation;
    2. Is not under construction, but excluding preparatory site work that is less than twenty-five percent (25%) of the estimated total project cost; and
    3. Except for small-scale solar projects, does not have in place investment or lending agreements necessary to finance the construction of the facility prior to the submittal of an application or bid for which the payment of performance-based incentives is sought under this chapter except to the extent that such financing agreements are conditioned upon the project owner being awarded performance-based incentives under the provisions of this chapter. For purposes of this definition, preexisting hydro generation shall be exempt from the provisions of subsection (6)(i) regarding operation, if the hydro-generation facility will need a material investment to restore or maintain reliable and efficient operation and meet all regulatory, environmental, or operational requirements. For purposes of this provision, “material investment” shall mean investment necessary to allow the project to qualify as a new, renewable energy resource under § 39-26-2 . To be eligible for this exemption, the hydro-project developer at the time of submitting a bid in the applicable procurement must provide reasonable evidence with its bid application showing the level of investment needed, along with any other facts that support a finding that the investment is material, the determination of which shall be a part of the bid review process set forth in § 39-26.6-16 for the award of bids.
  7. “Distributed-generation project” means a distinct installation of a distributed-generation facility. An installation will be considered distinct if it does not violate the segmentation prohibition set forth in § 39-26.6-9 .
  8. “Electric distribution company” means a company defined in § 39-1-2(a)(12) , supplying standard-offer service, last-resort service, or any successor service to end-use customers, but not including the Block Island Power Company or the Pascoag Utility District.
  9. “ISO-NE” means Independent System Operator-New England, the Regional Transmission Organization for New England designated by the Federal Energy Regulatory Commission.
  10. “Large distributed-generation project” means a distributed-generation project that has a nameplate capacity that exceeds the size of a small distributed-generation project in a given year, but is no greater than five megawatts (5 MW) nameplate capacity.
  11. “Large-scale solar project” means a solar distributed-generation project with the nameplate capacity specified in § 39-26.6-7 .
  12. “Medium-scale solar project” means a solar distributed-generation project with the nameplate capacity specified in § 39-26.6-7 .
  13. “Office” means the Rhode Island office of energy resources.
  14. “Program year” means a year beginning April 1 and ending March 31, except for the first program year, that may commence after April 1, 2015, subject to commission approval.
  15. “Renewable energy certificate” means a New England Generation Information System renewable energy certificate as defined in § 39-26-2(14) .
  16. “Renewable energy classes” means categories for different renewable energy technologies using eligible renewable energy resources as defined by § 39-26-5 , including biogas created as a result of anaerobic digestion, but, specifically excluding all other listed eligible biomass fuels specified in § 39-26-2(6) . For each program year, in addition to the classes of solar distributed generation specified in § 39-26.6-7 , the board shall determine the renewable energy classes as are reasonably feasible for use in meeting distributed-generation objectives from renewable energy resources and are consistent with the goal of meeting the annual target for the program year. The board may make recommendations to the commission to add, eliminate, or adjust renewable energy classes for each program year, provided that the solar classifications set forth in § 39-26.6-7 shall remain in effect for at least the first two (2) program years and no distributed-generation project may exceed five megawatts (5 MW) of nameplate capacity.
  17. “Shared solar facility” means a single small-scale or medium-scale solar facility that must allocate bill credits to at least two (2), and no more than fifty (50), accounts in the same customer class and on the same or adjacent parcels of land. Public entities may allocate such bill credits to at least two (2), and up to fifty (50), accounts without regard to physical location so long as the facility and accounts are within the same municipality. In no case will the annual allocated credits in KWh exceed the prior three-year (3) annual average usage, less any reductions for verified energy-efficiency measures installed at the customer premises, of the customer account to which the bill credits are transferred.
  18. “Small distributed-generation project” means a distributed-generation renewable energy project that has a nameplate capacity within the following: Wind: fifty kilowatts (50 KW) to one and one-half megawatts (1.5 MW); small-scale solar projects and medium-scale solar projects with the capacity limits as specified in § 39-26.6-7 . For technologies other than solar and wind, the board shall set the nameplate capacity-size limits, but such limits may not exceed one megawatt (1 MW).
  19. “Small-scale solar project” means a solar distributed-generation project with the nameplate capacity specified in § 39-26.6-7 .

History of Section. P.L. 2014, ch. 200, § 1; P.L. 2014, ch. 216, § 1; P.L. 2016, ch. 149, § 4; P.L. 2016, ch. 163, § 4; P.L. 2020, ch. 79, art. 1, § 21.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

39-26.6-4. Continuation of board.

  1. The distributed generation standard contract board shall remain fully constituted and authorized as provided in chapter 26.2 of this title; provided, however, that the name shall be changed to the “distributed-generation board.” Additional purposes of the board shall be to:
    1. Evaluate and make recommendations to the commission regarding ceiling prices and annual targets, the make-up of renewable energy classifications eligible under the distributed-generation growth program, the terms of the tariffs, and other duties as set forth in this chapter;
    2. Provide consistent, comprehensive, informed, and publicly accountable involvement by representatives of all interested stakeholders affected by, involved with, or knowledgeable about the development of distributed-generation projects that are eligible for performance-based incentives under the distributed-generation growth program; and
    3. Monitor and evaluate the effectiveness of the distributed-generation growth program.
  2. The office, in consultation with the board, shall be authorized to hire, or to request the electric distribution company to hire, the services of qualified consultants to perform ceiling price studies subject to commission approval that shall be granted or denied within sixty (60) days of receipt of such request from the office. The cost of the studies shall be recoverable through the rate-reconciliation provisions of the electric distribution company set forth in § 39-26.6-25 , subject to commission approval. In addition, the office, in consultation with the board, may request the commission to approve other costs incurred by the board, office, or the electric distribution company to utilize consultants for annual programmatic services or to perform any other studies and reports, subject to the review and approval of the commission, that shall be granted or denied within one hundred twenty (120) days of receipt of the request from the office, and that shall be recoverable through the same reconciliation provisions.
  3. Revenues generated through the rate reconciliation process to finance the expenses incurred as outlined in subsection (b) shall be transferred to the office and deposited in a restricted-receipt account within the general fund. The restricted-receipt account shall be exempt from the indirect cost recovery assessment under § 35-4-27 .

History of Section. P.L. 2014, ch. 200, § 1; P.L. 2014, ch. 216, § 1; P.L. 2016, ch. 149, § 4; P.L. 2016, ch. 163, § 4; P.L. 2017, ch. 302, art. 7, § 3.

39-26.6-5. Tariffs proposed and approved.

  1. Each year, for a period of at least five (5) program years, the electric distribution company shall file tariffs with the commission that are designed to provide a multiyear stream of performance-based incentives to eligible renewable-distributed-generation projects for a term of years, under terms and conditions set forth in the tariffs and approved by the commission. The tariffs shall set forth the rights and obligations of the owner of the distributed-generation project and the conditions upon which payment of performance-based incentives by the electric distribution company will be paid. The tariffs shall include the non-price conditions set forth in §§ 39-26.2-7(2)(i) — (vii) for small distributed-generation projects (other than small- and medium-scale solar) and large distributed-generation projects; provided, however, that the time periods for the projects to reach ninety percent (90%) of output shall be extended to twenty-four (24) months (other than eligible anaerobic-digestion projects, which shall be thirty-six (36) months, and eligible small-scale hydro, which shall be forty-eight (48) months). The non-price conditions in the tariffs for small- and medium-scale solar shall take into account the different circumstances for distributed-generation projects of the smaller sizes.
  2. In addition to the tariff(s), the filing shall include the rules governing the solicitation and enrollment process. The solicitation rules will be designed to ensure the orderly functioning of the distributed-generation growth program and shall be consistent with the legislative purposes of this chapter.
  3. In proposing the tariff(s) and solicitation rules applicable to each year, the tariff(s) and rules shall be developed by the electric distribution company and will be reviewed by the office and the board before being sent to the commission for its approval. The proposed tariffs shall include the ceiling prices and term lengths for each tariff that are recommended by the board. The term lengths shall be from fifteen (15) to twenty (20) years; provided, however, that the board may recommend shorter terms for small-scale solar projects. Whatever term lengths between fifteen (15) and twenty (20) years are chosen for any given tariff, the evaluation of the bids for that tariff shall be done on a consistent basis such that the same term lengths for competing bids are used to determine the winning bids.
  4. The board shall use the same standards for setting ceiling prices as set forth in § 39-26.2-5 . In setting the ceiling prices, the board may specifically consider:
    1. Transactions for newly developed renewable energy resources, by technology and size, in the ISO-NE control area and the northeast corridor;
    2. Pricing from bids received during the previous program year;
    3. Environmental benefits, including, but not limited to, reducing carbon emissions;
    4. For community remote distributed-generation systems, administrative costs and financial benefits for participating customers;
    5. System benefits; and
    6. Cost-effectiveness.
  5. At least forty-five (45) days before filing the tariff(s) and solicitation rules, the electric distribution company shall provide the tariff(s) and rules in draft form to the board for review. The commission shall have the authority to determine the final terms and conditions in the tariff and rules. Once approved, the commission shall retain exclusive jurisdiction over the performance-based incentive payments, terms, conditions, rights, enforcement, and implementation of the tariffs and rules, subject to appeals pursuant to chapter 5 of this title.

History of Section. P.L. 2014, ch. 200, § 1; P.L. 2014, ch. 216, § 1; P.L. 2016, ch. 149, § 4; P.L. 2016, ch. 163, § 4.

39-26.6-6. Permanence of tariff terms once set.

It is the intention of the general assembly in enacting this chapter that the developers, owners, investors, customers, and lenders of the distributed-generation projects receiving performance-based incentives under the tariffs be able to rely on the tariffs for the entire term of the applicable tariff for purposes of obtaining financing. Consistent with that intention and expectation, the terms under the tariffs for a given program year, once approved by the commission, shall not be altered in any way that would undermine such reliance on those tariffs during the applicable terms of the tariffs; and in no circumstance will the performance-based incentive rate paid to a renewable energy project developer or owner be reduced during the term of the tariff once a renewable energy project has qualified to receive a tariff under the terms of this chapter.

History of Section. P.L. 2014, ch. 200, § 1; P.L. 2014, ch. 216, § 1.

39-26.6-7. Solar project size categories.

  1. Tariff(s) shall be proposed for each of the following solar distributed-generation classes:
    1. Small-scale solar projects;
    2. Medium-scale solar projects;
    3. Commercial-scale solar projects; and
    4. Large-scale solar projects.
  2. Such classes of solar distributed-generation projects shall be established based on nameplate megawatt size as follows:
    1. Large scale: solar projects from one megawatt (1 MW), up to and including, five megawatts (5 MW) nameplate capacity;
    2. Commercial scale: solar projects greater than two hundred fifty kilowatts (250 KW), but less than one megawatt (1 MW) nameplate capacity;
    3. Medium scale: solar projects greater than twenty-five kilowatts (25 KW), up to and including, two hundred fifty kilowatts (250 KW) nameplate capacity; and
    4. Small scale: solar projects, up to and including, twenty-five kilowatts (25 KW) nameplate capacity.
  3. Other classifications of solar projects may also be proposed by the board, subject to the approval of the commission. After the second program year, the board may make recommendations to the commission to adjust the size categories of the solar classes, provided that the medium-scale solar projects may not exceed two hundred fifty kilowatts (250 KW); and/or allocated capacity to community distributed-generation facilities, allowing them to compete or enroll under a distinct ceiling price.

History of Section. P.L. 2014, ch. 200, § 1; P.L. 2014, ch. 216, § 1; P.L. 2016, ch. 149, § 4; P.L. 2016, ch. 163, § 4.

39-26.6-8. Renewable technologies other than solar.

Tariffs also shall be proposed for on-shore wind and any other distributed-generation technologies permissible under this chapter that the board, in its discretion, recommends; provided, however, that no project shall exceed five megawatts (5 MW) nameplate capacity. The electric distribution company shall file tariffs for each technology and size categories recommended by the board pursuant to the procedures set forth in this chapter.

History of Section. P.L. 2014, ch. 200, § 1; P.L. 2014, ch. 216, § 1.

39-26.6-9. Project segmentation prohibition.

In no case may a project developer be allowed to segment a distributed-generation project on the same parcel or contiguous parcels into smaller-sized projects in order to fall under a smaller-size project classification. Notwithstanding this prohibition, a project developer may designate a generation unit on the same parcel or contiguous parcel for net metering or other means of participating in electricity markets, provided that the unit, or portion of the unit, designated for net metering or other market participation is not receiving performance-based incentives under this chapter; is capable of being segregated electrically; is configured with the electrical segregation; and is separately metered. Further, a project shall not be considered to have been segmented if:

  1. There is a lapse of at least twenty-four (24) months between: (i) The commencement of construction of new distributed-generation units on a parcel that is the same as, or is contiguous with, a parcel upon which a distributed-generation project has already been constructed; and (ii) The operation date of the preexisting project; or
  2. The new project is a different renewable technology.

History of Section. P.L. 2014, ch. 200, § 1; P.L. 2014, ch. 216, § 1.

39-26.6-10. Timing and schedule of tariff filings.

  1. The electric distribution company shall file with the commission the first set of tariffs and solicitation rules pursuant to this chapter no later than November 15, 2014. Thereafter, the electric distribution company shall make annual tariff and solicitation rules filings with the commission no later than November 15 prior to the beginning of the applicable program year, which tariffs and rules shall be applicable for the next program year.
  2. Upon receiving the filing from the electric distribution company, the commission shall open a docket to consider the filing. The commission shall issue an order approving the proposed tariffs and solicitation rules; provided, however, that the commission may make any modifications that it deems appropriate consistent with the legislative purposes of this chapter as set forth herein.
  3. For the first program year, the commission shall issue its order approving tariff(s) and solicitation rules by no later than March 31, 2015. Thereafter, the commission shall approve them by February 15 of each succeeding year.
  4. During the course of any program year, the electric distribution company may, at any time, in consultation with the office and the board, propose tariff or solicitation rules modifications. The commission shall consider the proposed modifications through an already open or new docket, and shall issue its order within one hundred five (105) days of the filing of the proposed modification. If approved, the proposed modification shall take effect for the next enrollment event following the issuance of the commission’s order.

History of Section. P.L. 2014, ch. 200, § 1; P.L. 2014, ch. 216, § 1.

39-26.6-11. Power purchase agreements not required.

The distributed-generation growth program shall be implemented and administered exclusively through the tariff structure and procedures set forth in this chapter, and the electric distribution company shall not be required to execute power purchase agreements for the procurement of the renewable energy distributed-generation capacity requirements set forth in this chapter.

History of Section. P.L. 2014, ch. 200, § 1; P.L. 2014, ch. 216, § 1.

39-26.6-12. Annual bidding and enrollments.

  1. With the exception of the first program year (2015), the electric distribution company, in consultation with the board and office, shall conduct at least three (3) tariff enrollments for each distributed-generation class each program year. For the first program year, the board may recommend that either two (2) or three (3) enrollments be conducted.
  2. During each program year, the tariff enrollments shall have both an annual targeted amount of nameplate megawatts (“annual MW target”) and a nameplate megawatt target for each separate enrollment event (“enrollment MW target”). The enrollment MW target shall comprise the specific portion of the annual MW target sought to be obtained in that enrollment. The enrollment MW targets shall be recommended by the board each year, subject to commission approval. The board shall also recommend a megawatt target for each class (“class MW target”) that comprises a specified portion of the enrollment MW target, subject to commission approval. If the electric distribution company, the office, and the board mutually agree, they may reallocate megawatts during an enrollment from one class to another without commission approval if there is an over-subscription in one class and an under-subscription in another, provided that the annual MW target is not being exceeded, except as provided in § 39-26.6-7 .
  3. The annual MW targets shall be established as follows; provided, however, that at least three megawatts (3 MW) of nameplate capacity shall be carved out exclusively for small-scale solar projects in each of the first four (4) program years:
    1. For the first program year (2015), the annual MW target shall be twenty-five nameplate megawatts (25 MW);
    2. For the second program year, the annual targets shall be forty nameplate megawatts (40 MW);
    3. For the third and fourth program years, the annual target shall be forty nameplate megawatts (40 MW), subject to the conditions set forth in subsection (f) of this section having been met for the applicable prior program year as determined in the manner specified in subsection (g) of this section;
    4. For the fifth program year, the annual target shall be set to obtain the balance of capacity needed to achieve one hundred sixty nameplate megawatts (160 MW) within the five-year (5) distributed-generation growth program, subject to subsection (e) of this section and the conditions set forth in subsection (f) of this section having been met for the fourth program year as determined in the manner specified in subsection (g) of this section; and
    5. From the year 2020 through the year 2029, the annual target for each program year shall be an additional forty nameplate megawatts (40 MW) above the annual target for the preceding program year.
  4. During the fifth year of the distributed-generation growth program, the board may recommend to the commission an extension of time in the event that additional time is required to achieve the full one hundred sixty nameplate megawatt (160 MW) target of the program. The commission shall approve the recommendation of the board; provided, however, that the commission may make any modifications to the board’s recommendation that the commission deems appropriate, consistent with the legislative purposes of this chapter as set forth herein.
  5. To the extent there was a shortfall of capacity procured under chapter 26.2 of this title from distributed-generation procurements in 2014, such shortfall amount may be added to the one hundred sixty megawatt (160 MW) target for acquisition in the fifth program year under this chapter. In no event shall the electric distribution company be required to exceed the aggregate amount of one hundred sixty (160) nameplate capacity plus any such shortfall amount over the five (5) years, but may do so voluntarily, in consultation with the board and subject to commission approval.
  6. The conditions specified in subsections (c)(3) and (c)(4) of this section are as follows: (1) That it is reasonable to conclude that the bid prices submitted in the procurements for the large-scale solar and commercial-scale solar classes were reasonably competitive in the immediately preceding program year; (2) That it is reasonable to conclude that the annual MW target specified for the next program year is reasonably achievable; and (3) That the electric distribution company was able to, or with reasonably prudent efforts should have been able to, perform the studies and system upgrades on a timely basis necessary to accommodate the number of applications associated with the targets without materially adversely affecting other electric-distribution construction projects needed to provide reliable and safe electric-distribution service. To the extent the board or the commission concludes that any of these conditions have not been met for the applicable program year, the board may recommend, and/or the commission may adopt, a new annual MW target, based on the factors set forth in subsection (h) of this section.
  7. Before the third, fourth, and fifth program years, each year the board shall review the conditions specified in subsection (f) of this section and make a recommendation to the commission for findings as to whether they have been met for the applicable year. The recommendation shall be filed with the commission, with copies to the office and the electric distribution company, and any person who has made a written request to the commission to be included in such notification, such list which may be obtained from the commission clerk, and a notice of such filing shall be posted by the commission on its website. If no party files an objection to the recommended findings within ten (10) business days of the posting, the commission may accept them without hearings. If an objection is filed with a reasonable explanation for its basis, the commission shall hold hearings and make the factual determination of whether the conditions have been met.
  8. In the event that the conditions in subsection (f) of this section have not been met for any program year, then the board and the commission shall take into account the factors set forth below in setting the annual MW target for the following year. In addition, for every program year the board and the commission shall take into account these factors in setting the class MW targets, and the enrollment MW targets for the following year: (1) That the new annual, class, and enrollment levels reasonably assure that competition among projects for the applicable bidding classifications remains robust and likely to yield reasonable and competitive program costs; (2) That, assuming prudent management of the program, the electric distribution company should be able to perform the studies and system upgrades on a timely basis necessary to accommodate the number of applications associated with the targets without materially adversely affecting other electric-distribution construction projects needed to provide reliable and safe electric-distribution service; and (3) Any other reasonable factors that are consistent with the legislative purpose of this chapter as set forth herein, including the program purpose to facilitate the development of renewable distributed generation in the load zone of the electric distribution company at reasonable cost.
  9. The renewable energy growth program is intended to achieve at least an aggregate amount of one hundred sixty nameplate megawatts (160 MW) over five (5) years, plus any shortfall amount added in pursuant to subsection (e) of this section. However, after the second program year, the board may, based on market data and other information available to it, including pricing received during previous program years, recommend changes to the annual target for any program year above or below the specified targets in subsection (c) of this section if the board concludes that market conditions are likely to produce favorably low or unfavorably high target pricing during the upcoming program year, provided that the recommendation may not result in the five-year (5), one-hundred-sixty-megawatt-nameplate (160 MW) target, plus any shortfall added pursuant to subsection (e) of this section, being exceeded. Any megawatt reduction in an annual target shall be added to the target in the fifth year of the program (and any subsequent years if necessary) such that the overall program target of one-hundred-sixty-megawatt-nameplate (160 MW) capacity, plus any shortfall added pursuant to subsection (e) of this section, is achieved. In considering these issues, the board and the commission may take into account the reasonableness of current pricing and its impact on all electric distribution customers and the legislative purpose of this chapter as set forth herein, including the program purpose to facilitate the development of renewable distributed generation in the load zone of the electric distribution company at reasonable cost.
  10. The provisions of § 39-26.1-4 shall apply to the annual value of performance-based incentives (actual payments plus the value of net-metering credits, as applicable) provided by the electric distribution company to all the distributed-generation projects under this chapter, subject to the following conditions:
    1. The targets set for the applicable program year for the applicable project classifications were met or, if not met, such failure was due to factors beyond the reasonable control of the electric distribution company;
    2. The electric distribution company has processed applications for service and completed interconnections in a timely and prudent manner for the projects under this chapter, taking into account factors within the electric distribution company’s reasonable control. The commission is authorized to establish more specific performance standards to implement the provisions of this chapter; and
    3. The incentive shall be one and three-quarters percent (1.75%) of the annual value of performance-based incentives. The commission is authorized to establish more specific performance standards to implement the provisions of this paragraph.

History of Section. P.L. 2014, ch. 200, § 1; P.L. 2014, ch. 216, § 1; P.L. 2017, ch. 17, § 1; P.L. 2017, ch. 56, § 1.

39-26.6-13. Cost reconciliation.

To the extent the electric distribution company incurs incremental costs to meet the program objectives or make billing system improvements that are required to facilitate payments of performance-based incentives and administering net metering, the electric distribution company may elect to recover those incremental costs through the annual charge set forth in § 39-26.6-25 , subject to commission review and approval that assures such costs were properly and prudently incurred.

History of Section. P.L. 2014, ch. 200, § 1; P.L. 2014, ch. 216, § 1.

39-26.6-14. Existing powers of agencies and advocacy rights of parties unchanged.

Nothing in this chapter shall be construed to derogate from the statutory authority of the commission or the division of public utilities and carriers, including, but not limited to, the authority to protect ratepayers from unreasonable rates. Nothing in this chapter shall be construed to preclude any party from advocating a position in commission proceedings that differs from the recommendations made by the board to the commission or in any filing with the commission relating to this chapter, including, without limitation: (1) Individual or organizational members of the board; (2) Participants in board deliberations; (3) The office; and (4) The electric distribution company, unless the party has consented by vote to the execution or executed a settlement agreement agreeing to the terms, policy proposals, or any other matter proposed to the commission.

History of Section. P.L. 2014, ch. 200, § 1; P.L. 2014, ch. 216, § 1.

39-26.6-15. Bidding and incentive award processes for solar DG projects.

  1. Large-scale and commercial-scale solar projects and distributed-generation projects for other eligible technologies shall bid a price-per-kilowatt-hour for the entire output of the facility (net of any station service) that shall not exceed the applicable ceiling price. Small-scale and medium-scale solar projects will submit an enrollment application to receive a standard performance-based incentive for the period of years in the applicable tariff, that shall be a price-per-kilowatt-hour for the entire output of the facility. Except for megawatts that may be allocated to the energy-efficiency program pursuant to § 39-26.6-19 , small- and medium-scale projects shall be selected on a first-come, first-served basis, or by means of a commission-approved lottery system, or such other method as may be recommended by the board and approved by the commission.
  2. Except for the first program year, the board shall determine, subject to commission approval, the standard performance-based incentive for small- and medium-sized solar projects from the average bid price from the last two (2) procurement enrollments conducted in the commercial-scale and/or large-scale solar projects class. For the first program year, the board may derive the standard performance incentive for small- and medium-sized solar projects from the bidding data obtained from the distributed-generation program in effect in 2014 under the provisions of chapter 26.2 of this title until there is bidding data from the first procurement under the new program which shall then be used to set a new standard performance incentive. The standard performance incentive may be set at a higher rate than payments for commercial-scale and large-scale solar projects in order to take into account the potentially higher per-unit cost of smaller projects. The standard performance incentive also shall be adjusted upward or downward, as needed, in order to take into account the term length over which the incentive shall be paid for the small- and medium-scale solar projects if such terms are different than the terms applicable to the classes from which the standard performance incentive was derived.
  3. For each program year, the board shall recommend to the commission a standard performance incentive for each of the small-scale and medium-scale solar project classifications. Upon receiving the recommendations from the board, the commission shall open a docket to consider the recommendations or address the recommendations in its approval process for the program year in a consolidated docket as provided in § 39-26.6-10 . The commission shall issue its order approving the recommendations no later than concurrently with approval of the entire program and tariffs applicable to the program year; provided, however, that the commission may make modifications or changes to the board’s recommendations consistent with the legislative purposes of this chapter.
  4. If after the first program year, the applications for the medium-scale solar projects are significantly over-subscribed, then the board and the electric distribution company, in consultation with the office, may propose to the commission a bidding process for medium-scale projects or a subset of the medium-scale projects under which project selections would be made based on the lowest bids, rather than first-come, first-served or such other method previously approved by the commission. The commission shall approve the proposal from the board and electric company within ninety (90) days; provided, however, that the commission may make changes to the proposal consistent with the legislative purposes of this chapter.
  5. The commission shall approve the bidding process for medium-scale solar projects recommended by the board only if the commission finds that such bidding process is in a sufficiently simple form that is not administratively burdensome to bidders, and will not have the effect of discouraging participation in the distributed-generation growth program by developers of medium-scale solar projects that may be unrepresented by counsel.

History of Section. P.L. 2014, ch. 200, § 1; P.L. 2014, ch. 216, § 1.

39-26.6-16. Enrollment program.

  1. Each enrollment shall be open for a two-week (2) period during which the electric distribution company is required to receive standard short-form applications. The standard short-form application shall require the applicant to provide the following information: the project owner’s identity; the location of the proposed project; the nameplate capacity of the proposed project; and renewable energy class of the proposed project. The standard short-form application shall allow project owners to provide additional information relative to the permitting, financial feasibility, ability to build, and timing for deployment of the proposed projects. The applicant must submit an affidavit with the standard short-form application confirming that the project is not in violation of the rules that prohibit project segmentation, as set forth in § 39-26.6-9 .
  2. For large distributed-generation projects only, the standard short-form application shall also require the applicant to bid a bundled price that applies to the energy, renewable energy certificates, and all other environmental attributes and market products that are available, or may become available, from the distributed-generation facility on a per-kilowatt-hour basis measured from the output of the project. At the election of the electric distribution company, and subject to the approval of the commission, the bid may be required to include the sale of capacity.
  3. For (i) Small distributed-generation projects other than small-scale and medium-scale solar projects; and (ii) Large distributed-generation projects, the electric distribution company shall select projects based on the lowest proposed prices received that do not exceed the ceiling price from the distributed-generation projects that meet the requirements of all applicable tariffs and regulations, and meet the criteria of the renewable energy class in effect, until the class target is met. Performance-based incentives shall be awarded to the winning bidders based on their bids submitted.
  4. For small-scale and medium-scale solar projects, awards shall be made in the manner set forth in §§ 39-26.6-15 and 39-26.6-19 .
  5. If there are more projects bidding at the same price than the capacity that is specified for a class target, the electric distribution company shall, in consultation with the board and the office, select first those projects that appear to be the furthest along in development and that are most likely to be deployed. Those projects that are likely to be deployed at the earliest time shall be selected first. To the extent the electric distribution company is unable to make a clear distinction on this basis, the electric distribution company shall report its findings to the board and not award bids for those projects that are tied on pricing. In that case, the board may take such action as it deems appropriate for the selection of projects, including seeking more information from the projects.
  6. Should the electric distribution company determine that it has made sufficient awards to achieve a program-year class target, it shall immediately report this fact to the board, the office, and the commission, and may cease making awards for that renewable energy class for the remainder of the program year. In any event, the electric distribution company may exceed the renewable energy class target if the last award may cause the total purchased to exceed the target.
  7. The board, the office, and the electric distribution company shall enter into a memorandum of understanding regarding the sharing of the information and data related to the renewable energy growth program, including, without limitation, information on bids received, details regarding project ownership, and pricing. At the request of the board, the office, or the electric distribution company, the commission shall have the authority to protect from public disclosure individual bid information for any projects that have not been awarded performance-based incentives.
  8. The electric distribution company is authorized to award bids up to the applicable ceiling price. As long as the terms of the tariff are met, and the pricing is no higher than the applicable ceiling price, such awards shall be deemed prudent and approved by the commission for purposes of recovering the costs in rates.
  9. With respect to any procurement that includes bids from pre-existing, hydroelectric generation, the electric distribution company, in consultation with the office, shall have the authority to accept the applicant’s representation that its investment is material, within the meaning of § 39-26.6-3(6) . However, if the electric distribution company or the office questions whether the material investment standard has been met or the application is otherwise rejected, the application shall be submitted to the board for review and the board shall draw its own conclusion and make a recommendation to the commission at the time the commission is approving awards from the procurement to which the application pertains. The commission shall have the final authority to make the determination as to whether the material investment standard has been met. Nothing in this subsection shall preclude a project developer from seeking a preliminary confirmation of eligibility for the material-investment exemption from the electric distribution company, the office, and the board prior to the submittal of a bid. In such case, if there is any disagreement, the final determination shall be submitted to the commission.

History of Section. P.L. 2014, ch. 200, § 1; P.L. 2014, ch. 216, § 1.

39-26.6-17. Excess enrollment not required.

The electric distribution company shall not be required to award bids in excess of the annual target for the applicable program year and shall not be required to procure projects in excess of any limit set by the board and approved by the commission for a given enrollment. However, the electric distribution company, in consultation with the board and the office, may voluntarily exceed an enrollment period limit as long as it does not exceed an annual target for the applicable program year. At its election, the electric distribution company may exceed an annual target for the applicable program year after review by the board and approval by the commission.

History of Section. P.L. 2014, ch. 200, § 1; P.L. 2014, ch. 216, § 1.

39-26.6-18. Utility right to separately meter.

Owners of medium-scale, commercial-scale, and large-scale solar projects and other distributed-generation technologies shall be required to provide, at their cost, a revenue-quality meter to standards approved by the division of public utilities and carriers and provide access to the information from the meter to the electric distribution company to measure the output of the generation. The electric distribution company shall have the discretion to install the second meter in a parallel configuration to the retail meter or behind the meter, provided that a parallel installation shall have no effect on the right of the customer to net meter using the net of the two meters. The electric distribution company also shall have the right to install its own revenue-quality meter for small-scale solar projects if not being supplied by the owner. The electric distribution company shall recover the installation and capital cost of the separate meters it installs for small-scale solar projects in the annual reconciliation of solar costs under § 39-26.6-25 .

History of Section. P.L. 2014, ch. 200, § 1; P.L. 2014, ch. 216, § 1.

39-26.6-19. Coordination with energy-efficiency programs.

  1. In consultation with the office, the electric distribution company may make a request to the commission that up to half of the megawatts for the small- and medium-scale solar project enrollments be allocated by the commission for selection through a process coordinated with the energy-efficiency program in order that specified solar incentives may be tied with energy-efficiency program incentives in order to allow the electric distribution company to implement a coordinated, energy efficiency and solar program offering. In this case, the electric distribution company will propose criteria for eligibility for performance-based incentives for solar that require certain energy-efficiency standards be met at the customer location in order to be eligible for performance-based incentives for a small-scale and/or medium-scale solar installation.
  2. The electric distribution company must also include program parameters that do not disrupt competition among small-scale and/or medium-scale solar developers, including, without limitation, safeguards against any one, or subset of, developers in this market being given exclusive rights or other market advantages over competitors. In approving the proposal, the commission must find that there is no such small- and medium-solar-market disruption.
  3. The commission shall approve the request of the distribution company within ninety (90) days, making such modifications as it deems reasonable, provided the modifications are consistent with the legislative purposes of this chapter and the state’s energy-efficiency goals.
  4. The allocation of megawatts is for implementation purposes only and shall not authorize funds to be shifted from the distributed-generation growth program to energy-efficiency programs, nor will implementation of the electric distribution company’s request cause a reduction of the annual or cumulative capacity goals established for the distributed-generation growth program. To the extent that the megawatts allocated to the energy-efficiency program pursuant to this section are not committed during a program year, such uncommitted megawatts shall be allocated back to the distributed-generation growth program in the following year or such year the board recommends to the commission. Funding for the energy-efficiency measures that are tied to the solar installations must be obtained separately from the energy-efficiency program budget funded through applicable energy-efficiency charges.
  5. Should the small-scale and medium-scale project classes in the renewable energy growth program be oversubscribed in two (2) consecutive enrollments and there are megawatts that have not been committed through the process coordinated with the energy-efficiency program after the second enrollment, the board, after consultation with the office and the electric distribution company, shall have the authority to move all, or a portion of, the uncommitted megawatts out of the coordinated program back to the renewable energy growth program to meet the demand of the oversubscription, subject to commission approval. If, in such case, the board does not exercise the authority, any party may file a petition to the commission requesting action to be taken.

History of Section. P.L. 2014, ch. 200, § 1; P.L. 2014, ch. 216, § 1.

39-26.6-20. Issuance of certificates and right to incentive payments.

  1. For small-scale and medium-scale solar projects, the electric distribution company shall provide certificates of eligibility to the selected projects without commission confirmation of approval (“distribution company awarded certificates”), subject to the review and consent of the office. The electric distribution company shall file with the commission a list of all these distribution-company-awarded certificates.
  2. For commercial-scale and large-scale solar, and all other distributed-generation projects, the electric distribution company shall file with the commission a list of the distributed-generation projects selected together with the corresponding pricing information. Within sixty (60) days of receipt of the list, the commission shall issue an order awarding certificates of eligibility to the distributed-generation projects (“PUC awarded certificates”).
  3. Upon receipt of a PUC-awarded certificate or a distribution-company certificate, a distributed-generation project shall be entitled to receive, and the electric distribution company shall pay and/or credit (as applicable), the performance-based incentives for the specified term, and under the terms and conditions of the applicable tariff in the manner set forth below.
  4. The performance-based incentive shall be the price-per-kilowatt-hour that was bid and awarded, or established as a standard incentive, as applicable. The performance-based incentive shall be applied as a price-per-kilowatt-hour for all kilowatt-hours actually produced from the distributed generation (net of station service, if any) for the term of years specified in the applicable tariff, less the value of any kilowatt-hour charges that were offset by any net metering (if applicable) for the host customer associated with the distributed generation for the billing month; provided, however, if the value of kilowatt-hour charges that otherwise would be offset by net metering in a given month exceeds the total value of the performance-based incentive for the month, the customer shall not be subject to any additional charge, nor receive any additional net-metering credit, for the difference between the performance-based incentive value and net-metering value for the month.
  5. Except as provided herein for residential small-scale solar projects, in every case where a distributed-generation project can be configured for net metering, it shall be the election of the owner of the generation to choose one of two (2) separate methods through which the owner will be compensated for the performance-based incentive:
    1. The owner is compensated solely through direct payments under the performance-based incentive provisions of this chapter for the life of the tariff term with no net metering implemented; or
    2. The owner is compensated through a combination of direct payments and the bill credit value of net metering for the life of the term of the tariff under the provisions of this chapter.
    3. In the case of residential small-scale solar projects, only option (2) shall be available.
    4. In either option, the total value of the performance-based incentive per-kilowatt-hour is the same. An owner shall have a one-time right to switch the compensation methods after the generation commences operation, provided that at least sixty (60) days’ notice is given to the electric distribution company. Thereafter, any further compensation method switches shall be at the sole discretion of the electric distribution company if requested again by the owner.
  6. Every owner who elects the compensation method shall:
    1. Receive compensation solely in the form of a check from the electric distribution company, or other payment method that is mutually agreed between the electric distribution company and the owner; and
    2. Shall receive compensation in the form of offsets against its electricity bill from the electric distribution company from net metering and the balance in the form of a check from the electric distribution company, or other payment method that is mutually agreed upon between the electric distribution company and the owner; provided, however, that no owner of a distributed-generation project may be compensated twice for the same kilowatt hour of electricity, and that every self-generator shall receive the full pecuniary benefit of its election to participate in the performance-based incentive program.
  7. Every owner of a distributed-generation project that can be configured for net metering that elects the first option for compensation under the provisions of subsection (e) shall become eligible to net meter its output in conformity with the provisions of existing law upon the completion of the full term of the applicable tariff. Nothing in this section shall preclude a customer from electing not to participate in the performance-based program and electing simply to net meter under the provisions of existing law; provided, however, once an election is made to participate, the customer will remain subject to the performance-based tariff conditions and may not terminate the arrangement without the consent of the electric distribution company.
  8. As provided in § 39-26.6-9 , any project developer may designate a generation unit on the same parcel or contiguous parcel for net metering, provided that such unit or portion of such unit designated for net metering is not receiving performance-based incentives under this chapter, is capable of being segregated electrically, is configured with such electrical segregation, and is separately metered.
  9. All distributed-generation projects accepting certificates shall be obligated to abide by all the terms and conditions of the approved, applicable tariff.

History of Section. P.L. 2014, ch. 200, § 1; P.L. 2014, ch. 216, § 1.

39-26.6-21. Ownership of output, other attributes, and renewable energy certificates.

  1. Except as provided herein for residential small-scale solar projects, distributed-generation projects participating in the renewable energy growth program shall transfer to the electric distribution company the rights and title to:
    1. Those renewable energy certificates generated by the project during the term of the applicable, performance-based incentive tariff;
    2. All energy produced by the generation that is not otherwise consumed on site under a net-metering arrangement; and
    3. Rights to any other environmental attributes or market products that are created or produced by the project; provided, however, that it shall be the election of the electric distribution company whether it chooses to acquire the capacity of the distributed-generation projects under the tariffs set forth in this chapter and no ceiling prices recommended by the board and approved by the commission will be adjusted downward in light of the electric distribution company’s election. The electric distribution company shall: (1) Sell any products acquired and credit them to the reconciliation account specified in § 39-26.6-25 ; and/or (2) Use the products to serve customers and establish a price to be credited by customers using the products based on recent and near-term projections of market prices. When a generator reverts to net metering after the end of the tariff term under the renewable energy growth program, the net-metering generator shall retain title to the renewable energy certificates generated by the project. In the case of residential small-scale projects, title to all energy and capacity produced from the solar generation shall remain with the residential customer; shall not be transferred to the electric distribution company; and shall be deemed consumed by the residential customer on-site during the applicable, distribution-service billing period with no sale or purchase between the residential customer and the electric distribution company.
  2. For the accounting purposes of the electric distribution company in treating the performance-based incentives, the cost of the energy that is procured shall be the real-time market price of energy and the balance of the performance-based incentive shall be attributable to the purchase of environmental and any other attributes acquired. This accounting shall have no effect on the total, bundled performance-based incentive to which the distributed-generation project is entitled under the provisions of this chapter.

History of Section. P.L. 2014, ch. 200, § 1; P.L. 2014, ch. 216, § 1; P.L. 2016, ch. 149, § 4; P.L. 2016, ch. 163, § 4.

39-26.6-22. Zonal and other incentive payments.

In order to provide the electric distribution company with the flexibility to encourage distributed-generation projects to be located in designated geographical areas within its load zone where there is an identifiable system benefit, reliability benefit, or cost savings to the distribution system in that geographical area, the electric distribution company, in consultation with the board and the office, may propose to include an incentive-payment adder to the bid price of any winning bidder that proposes a distributed-generation project in the desired geographical area. The electric distribution company also may propose other incentive payments to achieve other technical or public policy objectives that provide identifiable benefits to customers. Any incentive-payment adders must be approved by the commission, and shall not be counted as part of the bid price when the bids are selected at an enrollment event.

History of Section. P.L. 2014, ch. 200, § 1; P.L. 2014, ch. 216, § 1.

39-26.6-23. Intersection of distributed generation and net metering.

  1. Net-metering credits for excess generation shall not be credited during the term of the tariff when the distributed-generation project is receiving performance-based incentive payments under the tariff. After the end of the term of the performance-based incentive tariff applicable to a distributed-generation project, net-metering credits for excess generation in any given month shall be credited to the net-metered account at the applicable rate allowed under the law.
  2. All distributed-generation projects that had begun development prior to the date the commission approves the first set of ceiling price recommendations from the board and that are in operation by no later than July 1, 2016, shall be eligible to continue operation under the net-metering rules that would have been applicable to that self-generation project absent the change in law set forth in this section, provided that the project does not otherwise participate in the performance-based incentive program set forth in this chapter.

History of Section. P.L. 2014, ch. 200, § 1; P.L. 2014, ch. 216, § 1.

39-26.6-24. Rate design review by the commission.

  1. On or after July 1, 2015, the commission shall open a docket to consider rate design and distribution cost allocation among rate classes in light of net metering and the changing distribution system that is expected to include more distributed-energy resources, including, but not limited to, distributed generation. The commission will determine the appropriate cost responsibility and contributions to the operation, maintenance, and investment in the distribution system that is relied upon by all customers, including, without limitation, non-net-metered and net-metered customers. In that docket, the commission shall require the electric distribution company to file a revenue-neutral allocated-cost-of-service study for all rate classes and a proposal for new rates for all customers in each rate class. The electric distribution company shall use the distribution-revenue requirement upon which the then-current distribution rates were set. The electric distribution company may use the allocated cost of service that was filed with the compliance filing from the rate case when the then-current distribution rates were set. The commission may also address the rate design for the equitable recovery of costs associated with energy efficiency and any renewable energy programs that are recovered in rates.
  2. In establishing any new rates the commission may deem appropriate, the commission shall take into account and balance the following factors:
    1. The benefits of distributed-energy resources;
    2. The distribution services being provided to net-metered customers when the distributed generation is not producing electricity;
    3. Simplicity, understandability, and transparency of rates to all customers, including non-net-metered and net-metered customers;
    4. Equitable ratemaking principles regarding the allocation of the costs of the distribution system;
    5. Cost causation principles;
    6. The general assembly’s legislative purposes in creating the distributed-generation growth program; and
    7. Any other factors the commission deems relevant and appropriate in establishing a fair rate structure. The rates shall be designed for each proposed rate class in accordance with industry-standard, cost-allocation principles. The commission may consider any reasonable rate design options, including without limitation, fixed charges, minimum-monthly charges, demand charges, volumetric charges, or any combination thereof, with the purpose of assuring recovery of costs fairly across all rate classes.
  3. The commission shall issue an order in the docket by no later than March 1, 2016. Any new rates shall take effect for usage on and after April 1, 2016; provided, however, that the electric distribution company may seek an extension if necessary to make the billing system changes necessary to implement a new rate structure. After new, revenue-neutral rates are set in the docket specified above, the commission may approve changes to the rate design in any future distribution-base-rate cases when a fully allocated embedded cost-of-service study is being reviewed in the rate case, subject to the principles set forth in subsection (b) of this section.

History of Section. P.L. 2014, ch. 200, § 1; P.L. 2014, ch. 216, § 1; P.L. 2015, ch. 59, § 1; P.L. 2015, ch. 62, § 1.

39-26.6-25. Forecasted rate and reconciliation.

  1. Three (3) months prior to the beginning of the first program year, the electric distribution company shall file a forecast of the total amount of payments that is likely to be paid out to distributed-generation projects in the coming program year within the electric distribution company’s load zone, along with any costs permitted for recovery pursuant to §§ 39-26.6-4 , 39-26.6-13 and 39-26.6-18 . The total of all forecasted payments and costs shall be aggregated, net of forecasted revenues from the sale of the energy, renewable energy certificates, and any other market products from the distributed-generation projects participating in the performance-based incentive program. The forecasted net-aggregate amount shall be used to design a fixed monthly charge per customer to recover the net forecast in rates charged to all distribution customers during the prospective calendar year, which fixed charge may be different by rate class in order to reasonably and equitably spread the program costs across all customer classes. The fixed rate shall stay in effect until changed after the first reconciliation filing set forth below and the rate reconciliation process shall be repeated annually, as set forth below. The commission, in its discretion, may move the reconciliation of costs and credits under § 39-26.1-5(f) into this reconciliation in order to have one reconciliation of all program costs and credits from the long-term contracting standard, distributed-generation standard contracting, and renewable energy growth program.
  2. Within three (3) months after the end of each program year, the electric distribution company shall reconcile the total amount recovered from distribution customers against the total of net payments and costs for the program year. The electric distribution company shall file the reconciliation with a report, along with a new forecast of payments to be made for the next twelve-month (12) period, net of forecasted revenues for the resale of energy, renewable energy certificates, or any other market attributes sold by the electric distribution company. The forecast shall be used to set a new rate in the same manner as set forth above and the new rate shall remain in effect until rates are reset in the next annual reconciliation and the reconciliation balance shall be reflected in the new rate.

History of Section. P.L. 2014, ch. 200, § 1; P.L. 2014, ch. 216, § 1.

39-26.6-26. Shared solar facilities.

  1. In order to facilitate the adoption of solar by customers in multifamily structures, campuses, multi-structure business parks, multi-tenant or multi-owner commercial facilities, and public entities with multiple accounts, the electric distribution company may establish rules and tariffs for program years starting on or after April 1, 2016. The rules and tariffs will set forth the requirements for eligible recipients, credit transfers, consumer protection, and other considerations and terms, with input from the office, for the commission’s review and approval.
  2. Shared solar facilities will receive the same ceiling price and enroll from the same classes of other projects of the same size and ownership as established by the board for a given program year.
  3. All customer accounts receiving bill credits shall be in the same customer class and the bill credit value from the shared solar facility shall be determined by the recipients’ rate class and not that of the facility owner. The credit value shall be the distribution, transition, transmission, and standard-offer supply rates of the bill credit recipients.
  4. Any value of bill credits not transferred from the shared solar facility shall be included in the total performance-based incentive, which shall be paid in accordance with the tariffs established by the electric distribution company.

History of Section. P.L. 2016, ch. 149, § 5; P.L. 2016, ch. 163, § 5.

39-26.6-27. Community remote distributed generation system.

  1. In order to facilitate the adoption of participation in renewable energy projects by eligible customers, the board may allocate a portion of the annual MW goal to a separate class, or classes, of community remote distributed-generation systems, which may compete under separate ceiling prices from non-community remote distributed-generation systems, for program years starting on or after April 1, 2016.
  2. Upon such allocation by the board, the electric distribution company shall establish rules and tariffs for program years starting on or after April 1, 2016, which rules and tariffs will set forth the requirements for eligible recipients, credit transfers, consumer protection, and other considerations and terms, with input from the office, for the commission’s review and approval.
  3. The value of credits to be allocated to credit recipients may be a fixed rate provided by the system owner, but shall not be greater than the sum of the standard-offer service, less the renewable energy standard charge or credit, and the transmission and transition rates, of the credit recipient as offered by the electric distribution company in effect at the time of establishing the transfer. If a fixed credit rate is not provided, the default credit will be the sum of the standard-offer service, less the renewable energy standard charge or credit, and the transmission and transition rates, of the credit recipient as offered by the electric distribution company in effect at the time of the transfer.
  4. Any credits not allocated in any month will be valued at the then-current default credit rate, and deducted from the total performance-based incentive of the enrolled system.
  5. Community remote distributed-generation systems shall not:
    1. Comprise more than thirty percent (30%) of the annual total of capacity available under the renewable energy growth program in each year;
    2. Be subject to a ceiling price that is more than fifteen percent (15%) higher than the then-in-effect ceiling price for the same technology of the same size as recommended by the board and approved by the commission; or
    3. Transfer credits to any account in an amount that in KWh exceeds the prior three-year (3) annual average usage.

History of Section. P.L. 2016, ch. 149, § 5; P.L. 2016, ch. 163, § 5.

Chapter 26.7 Nonregulated Power Producer Consumer Bill of Rights

39-26.7-1. Short title.

This chapter shall be known and may be cited as the “nonregulated power producer consumer bill of rights.”

History of Section. P.L. 2016, ch. 453, § 1; P.L. 2016, ch. 454, § 1.

39-26.7-2. Purpose.

The purpose of this act is to assist consumers in making an informed choice of a nonregulated power producer.

History of Section. P.L. 2016, ch. 453, § 1; P.L. 2016, ch. 454, § 1.

39-26.7-3. Definitions.

When used in this chapter, the following terms shall have the following meanings:

  1. “Commission” means the Rhode Island public utilities commission.
  2. “Division” means the division of public utilities and carriers.
  3. “Nonregulated power producer” shall have the same meaning as that which is contained in § 39-1-2 .

History of Section. P.L. 2016, ch. 453, § 1; P.L. 2016, ch. 454, § 1.

39-26.7-4. Consumer information requirements.

  1. On or before September 1, 2016, the division shall initiate a docket to redesign the standard billing format for residential customers to better enable residential customers to compare pricing policies and charges of nonregulated power producers to the standard-offer service rate. The division shall issue a final decision or rules in the docket not later than six (6) months after its initiation.
  2. In addition to all information required by §§ 39-3-37.2 and 39-3-37.3 , the rules shall provide for the bill to include a standard-offer service price to compare with the date of the next expected standard-offer rate change and the date by which a customer’s nonregulated power producer must initiate the transfer of service in order for the transfer to be complete by the next meter read date. If the standard-offer service rate is ever a variable or time-of-use rate, the division shall prescribe the manner in which the price to compare will be represented.
  3. On or before September 1, 2021, and every five (5) years thereafter, the division shall reopen the docket to ensure the standard billing format continues to meet the requirements of this section.
  4. The division shall facilitate the creation of an internet website that shall provide information necessary for a consumer to obtain service and compare pricing policies and charges among nonregulated power producers. This website may be maintained by a third party chosen through a competitive solicitation or through the Rhode Island government website, also known as “ri.gov” or its successor, and the cost of such website shall be funded through an assessment on any obligated entity, as the term is defined in § 39-26-2 , but excluding electric-distribution companies, in a manner governed by division regulation.
  5. On or before July 1, 2019, and every two (2) years thereafter, the division shall review the internet website and make any improvements to ensure the internet website remains a useful tool for customers to compare pricing policies and charges among nonregulated power producers.
  6. The nonregulated power producer shall make available to the division, and the provider of the internet website facilitated by the division, information required by the division on a schedule to be determined by the division.

History of Section. P.L. 2016, ch. 453, § 1; P.L. 2016, ch. 454, § 1.

39-26.7-5. Certain customer rights.

  1. An electric distribution company shall transfer a residential customer to the standard-offer service rate not later than the next billing cycle after receipt of a request from a residential customer eligible for standard-offer service.
  2. The electric distribution company shall not be liable for any contract termination fees that may be assessed by the nonregulated power producer.
  3. An electric distribution company shall transfer a residential customer to the electric-generation service rate of a nonregulated power producer not later than the next billing cycle after the electric distribution company receives from the nonregulated power producer a successful enrollment of the residential customer, unless the notification is not received by the electric distribution company in accordance with its commission-approved terms and conditions on file with the division and commission.
  4. Notwithstanding any other provision of the general laws, nothing shall prohibit a residential customer who moves from one dwelling to another dwelling within the state from immediately receiving electric generation service from a nonregulated power producer, provided the customer was receiving service from a nonregulated power producer immediately prior to the move.
  5. The electric distribution company shall include in its terms and conditions, subject to review and approval by the commission, conditions for release of customer information to a nonregulated power producer.
  6. Customers shall be entitled to any available, individual information about their loads or usage at no cost.
  7. On or before January 1, 2017, the division shall initiate a rulemaking proceeding to develop a standard summary form of the material terms and conditions of the contract for electric generation services signed by a residential customer. The form shall include, but not be limited to, the following:
    1. A description of the rate the customer will be paying;
    2. Whether the rate is a fixed or variable rate;
    3. The term and expiration date of the rate;
    4. Whether the contract will automatically renew;
    5. A notice describing the customer’s right to cancel the service, including the right to schedule the cancellation of service on a date certain at any time during the contract period, as provided in this section;
    6. Information on air emissions and resource mix of generation facilities operated by and under long-term contract to the nonregulated power producer;
    7. The trade name of the nonregulated power producer;
    8. The toll-free telephone number for customer service of the nonregulated power producer;
    9. The internet website of the nonregulated power producer;
    10. The toll-free telephone number for customer complaints of the division; and
    11. Any other information required by the division. Upon the division’s filing of regulations pursuant to this section, the commission shall initiate a rulemaking proceeding to repeal any rules that overlap with the regulations filed by the division.
  8. On and after January 1, 2017, each nonregulated power producer shall, prior to initiation of electric generation services, provide the potential residential customer with a completed summary form developed pursuant to this section. Each nonregulated power producer shall, prior to the initiation of electric generation services, provide the potential commercial or industrial customer with a written notice describing the rates; information that complies with § 39-26-9 and the commission’s rules governing energy source disclosure, which may be amended from time to time; terms and conditions of the service; and a notice describing the customer’s right to cancel the service, as provided in this section.
  9. No nonregulated power producer shall provide electric generation services unless the customer has signed a service contract or consents to the services by one of the following:
    1. An independent, third-party telephone verification;
    2. Receipt of a written confirmation, received in the United States mail from the customer, after the customer has received an information package confirming any telephone agreement;
    3. The customer signs a contract that conforms with the provisions of this section; or
    4. The customer’s consent is obtained through electronic means, including, but not limited to, a computer transaction. (j) Each nonregulated power producer shall provide each customer with a written contract, which contract may be provided in an electronic format, that conforms with the provisions of this section and maintain records of the signed service contract or consent to service for a period of not less than two (2) years from the date of expiration of the contract, which records shall be provided to the division or the customer upon request. (k) Each contract for electric generation services shall contain:
      1. All material terms of the agreement;
      2. A clear and conspicuous statement explaining the rates that the customer will be paying, including the circumstances under which the rates may change;
      3. A statement that provides specific directions to the customer as to how to compare the price terms in the contract to the customer’s existing electric-generation service charge on the electric bill and how long those rates are guaranteed;
      4. The contract shall also include a clear and conspicuous statement providing the customer’s right to cancel such contract not later than three (3) days after signature or receipt in accordance with the provisions of this subsection, describing under what circumstances, if any, the supplier may terminate the contract and describing any penalty for early termination of the contract;
      5. The methods by which a customer may cancel service through the nonregulated power producer which shall include electronic termination of an existing consumer’s service agreement prior to the consumer’s next bill read date so long as the request to disenroll has been made at least seven (7) calendar days in advance of the next bill read date. The electronic termination shall be provided in a clear and conspicuous location on the nonregulated power producer’s internet website, and a method by which a customer without internet access may cancel service; and
      6. Any other information required by the division. ( l ) Between thirty (30) and sixty (60) days, inclusive, prior to the expiration of a contract for a residential customer, a nonregulated power producer shall provide a written notice to the customer of the contract expiration date. The residential customer shall select the method of written notice at the time the contract is signed or verified through third-party verification, as described in this section, in a manner approved by the division. The customer shall have the option to change the method of notification at any time during the contract. (m) On and after August 1, 2019, no nonregulated power producer shall automatically renew or cause to be automatically renewed a contract with a residential customer; provided, however, that a new contract with a residential customer shall be required if the terms for electric generation services change from variable to fixed rates, fixed to variable rates, or to a different fixed rate. Any residential customer with a contract prior to August 1, 2020, that is scheduled to automatically renew any time after August 1, 2020, shall be notified by the nonregulated power producer in writing no less than thirty (30) days prior to the automatic renewal, and any residential customer on a variable rate without a new contract since August 1, 2020, shall be notified by the nonregulated power producer no less than once annually, of: (1) The rate a customer will pay under a renewed fixed rate agreement, or the current variable rate in the event the customer will pay a variable rate; and (2) The current default rate available; and (3) Clear instructions of the steps the residential customer must follow to return to the default rate. This subsection shall not apply to, or otherwise affect, any government body that aggregates the load of residential retail customers as part of an aggregation plan pursuant to § 39-3-1.2 .

        (n) No nonregulated power producer shall charge an electric-generation service rate to a residential customer that is twenty-five percent (25%) more than the original contract price, or the last rate notification provided by the nonregulated power producer, without disclosing the rate change described in this section fifteen (15) days before it takes effect. The disclosure shall be in writing and shall conform to any rules that may be promulgated by the division.

        (o) No third-party agent may sell electric generation services on behalf of a nonregulated power producer unless the third-party agent is an employee or independent contractor of the nonregulated power producer and the third-party agent has received appropriate training directly from the nonregulated power producer.

        (p) All sales and solicitations of electric generation services by a nonregulated power producer, aggregator, or agent of a nonregulated power producer or aggregator to a customer conducted and consummated entirely by United States mail; door-to-door sale; telephone or other electronic means; during a scheduled appointment at the premises of a customer; or at a fair, trade or business show, convention, or exposition, in addition to complying with the provisions of this section, shall comply with all state and local laws and regulations.

        (q) Any representative of a nonregulated power producer, aggregator, or agent of a nonregulated power producer or aggregator shall prominently display or wear a photo identification badge stating the name of the person’s employer or the nonregulated power producer the person represents and shall not wear apparel, carry equipment, or distribute materials that includes the logo or emblem of an electric distribution company or contains any language suggesting a relationship that does not exist with an electric distribution company, government agency, or other supplier.

        (r) No nonregulated power producer, aggregator, or agent of a nonregulated power producer or aggregator shall advertise or disclose the price of electricity to mislead a reasonable person into believing that the electric generation services portion of the bill will be the total bill amount for the delivery of electricity to the customer’s location, or make any statement, oral or written, suggesting a prospective customer is required to choose a supplier. When advertising or disclosing the price for electricity, the nonregulated power producer, aggregator, or agent of a nonregulated power producer shall, on and after January 1, 2017, indicate, using at least a ten-point (10) font size, in a conspicuous part of any advertisement or disclosure that includes an advertised price, the expiration of the advertised price, and any fixed or recurring charge, including, but not limited to, any minimum monthly charge.

History of Section. P.L. 2016, ch. 453, § 1; P.L. 2016, ch. 454, § 1; P.L. 2019, ch. 274, § 2; P.L. 2019, ch. 281, § 2; P.L. 2021, ch. 373, § 1, effective July 13, 2021; P.L. 2021, ch. 374, § 1, effective July 13, 2021.

Compiler's Notes.

P.L. 2021, ch. 373, § 1, and P.L. 2021, ch. 374, § 1 enacted identical amendments to this section.

39-26.7-6. Nonregulated power producer obligations.

  1. No contract for electric generation services by a nonregulated power producer shall require a residential customer to pay any fee for termination or early cancellation of a contract in excess of fifty dollars ($50.00), or twice the estimated bill for energy services for an average month, whichever is less; provided that when a nonregulated power producer offers a contract, it provides the residential customer an estimate of the customer’s average, monthly bill; and provided further, it shall not be considered a termination or early cancellation of a contract if a residential customer moves from one dwelling within the state and remains with the same nonregulated power producer. If a residential customer does not have a contract for electric generation services with a nonregulated power producer and is receiving a month-to-month variable rate from the supplier, there shall be no fee for termination or early cancellation.
  2. Each nonregulated power producer shall file annually with the division a list of any aggregators or agents working on behalf of the supplier.
  3. Each nonregulated power producer shall develop and implement standards and qualifications for employees and third-party agents who are engaged in the sale or solicitation of electric generation services by the supplier.
  4. Each nonregulated power producer, aggregator, or agent of a nonregulated power producer or aggregator shall comply with the provisions of the telemarketing regulations adopted pursuant to 15 U.S.C. § 6102.
  5. Any violation or failure to comply with any provision of this chapter or rules promulgated by the division shall be subject to civil penalties by the division including, a penalty of not less than two hundred dollars ($200) nor more than one thousand dollars ($1,000), and in the case of a continuing violation of any of the provisions of this chapter, every day’s continuance shall be deemed to be a separate and distinct offense, an order of refund, and/or the suspension or revocation of a nonregulated power producer’s certificate, or a prohibition on accepting new customers following a hearing.
  6. On or before July 1, 2017, the division shall initiate a rulemaking proceeding to develop and implement, or cause to be implemented, standards relating to abusive switching practices; solicitations and renewals by nonregulated power producers; the hiring and training of sales representatives; door-to-door sales; and telemarketing practices by nonregulated power producers, in accordance with the goal of ensuring customers have sufficient information to make an informed decision. The division shall issue final rules on such docket not later than six (6) months after its initiation.
  7. The division may initiate a docket to review the feasibility, costs, and benefits of placing on standard-offer service all customers of all nonregulated power producers who are hardship cases.

History of Section. P.L. 2016, ch. 453, § 1; P.L. 2016, ch. 454, § 1.

Chapter 27 The Energy and Consumer Savings Act of 2005

39-27-1. General purpose.

This chapter establishes energy and consumer savings by setting minimum efficiency standards for certain products sold or installed in the state.

History of Section. P.L. 2005, ch. 136, § 1; P.L. 2005, ch. 146, § 1.

Compiler's Notes.

Chapter 27.1 of this title to be construed to supersede any conflicting provisions of this chapter, see § 39-27.1-1 et seq.

39-27-2. Findings.

The legislature finds that:

  1. Efficiency standards for certain products sold or installed in the state assure consumers and businesses that such products meet minimum efficiency performance levels, thus saving money on utility bills.
  2. The efficiency standards save energy and thus reduce pollution and other environmental impacts associated with the production, distribution, and use of electricity and natural gas.
  3. The efficiency standards can make electricity systems more reliable by reducing the strain on the electricity grid during peak demand periods. Furthermore, improved energy efficiency can reduce or delay the need for new power plants, power-transmission lines, and power-distribution system upgrades.
  4. Energy efficiency standards contribute to the economy of this state by helping to better balance energy supply and demand, thus reducing pressure for higher natural gas and electricity prices. By saving consumers and businesses money on energy bills, efficiency standards help the state and local economy, since energy bill savings can be spent on local goods and services.

History of Section. P.L. 2005, ch. 136, § 1; P.L. 2005, ch. 146, § 1.

Compiler's Notes.

Chapter 27.1 of this title to be construed to supersede any conflicting provisions of this chapter, see § 39-27.1-1 et seq.

39-27-3. Definitions.

As used in this chapter:

  1. “Automatic commercial icemaker” means a factory-made assembly that is shipped in one or more packages that consists of a condensing unit and ice-making section operating as an integrated unit, that makes and harvests ice cubes, and that may store and dispense ice. This term includes machines with capacities between and including fifty (50) and two thousand five hundred (2,500) pounds per twenty-four (24) hours.
  2. “Ballast” means a device used with an electric discharge lamp to obtain necessary circuit conditions (voltage, current and waveform) for starting and operating the lamp.
  3. “Boiler” means a self-contained, low-pressure appliance for supplying steam or hot water primarily designed for space heating.
  4. “Bottle-type water dispenser” means a water dispenser that uses a bottle or reservoir as the source of potable water.
  5. “Chief of Energy and Community Services” means the head official of the Rhode Island state energy office.
  6. “Commercial clothes washer” means a soft-mount horizontal or vertical-axis clothes washer that:
    1. Has a clothes container compartment no greater than three and one-half cubic feet (3.5 cu ft.) in the case of a horizontal-axis product or no greater than four cubic feet (4 cu ft.) in the case of a vertical-axis product; and
    2. Is designed for use by more than one household, such as in multifamily housing, apartments, or coin laundries.
  7. “Commercial hot food holding cabinet” means an appliance that is a heated, fully-enclosed compartment with one or more solid doors, and that is designed to maintain the temperature of hot food that has been cooked in a separate appliance. “Commercial hot food holding cabinet” does not include heated glass merchandizing cabinets, drawer warmers, or cook-and-hold appliances.
  8. “Commercial pre-rinse spray valve” means a hand-held device designed and marketed for use with commercial dishwashing and ware washing equipment and that sprays water on dishes, flatware, and other food service items for the purpose of removing food residue prior to their cleaning.
  9. “Commercial refrigerator, freezer, and refrigerator-freezer” means self-contained refrigeration equipment that:
    1. Is not a consumer product as regulated pursuant to 42 U.S.C. § 6291 and subsequent sections;
    2. Operates at a chilled, frozen, combination chilled/frozen, or variable temperature for the purpose of storing and/or merchandising food, beverages, and/or ice;
    3. May have transparent and/or solid hinged doors, sliding doors, or a combination of hinged and sliding doors; and
    4. Incorporates most components involved in the vapor compression cycle and the refrigerated compartment in a single cabinet.

      This term does not include:

      (i) Units with eighty-five cubic feet (85 cu. ft.) or more of internal volume;

      (ii) Walk-in refrigerators or freezers;

      (iii) Units with no doors; or

      (iv) Freezers specifically designed for ice cream.

  10. “Commission” means the Rhode Island public utilities commission.
  11. “Compensation” means money or any other valuable thing, regardless of form, received, or to be received, by a person for services rendered.
  12. “Electricity ratio” is the ratio of furnace electricity use to total furnace energy use. Electricity ratio = (3.412*EAE/(1000*Ef +3.412*EAE)) where EAE (average annual auxiliary electrical consumption) and EF (average annual fuel energy consumption) are defined in Appendix N to subpart B of part 430 of title 10 of the Code of Federal Regulations.
  13. “High-intensity discharge lamp” means a lamp in which light is produced by the passage of an electric current through a vapor or gas, and in which the light-producing arc is stabilized by bulb wall temperature and the arc tube has a bulb wall loading in excess of three watts (3 W) per square centimeter.
  14. “Illuminated exit sign” means an internally-illuminated sign that is designed to be permanently fixed in place to identify a building exit and consists of an electrically powered integral light source that illuminates the legend “EXIT” and any directional indicators and provides contrast between the legend, any directional indicators and the background.
  15. “Large packaged air-conditioning equipment” means electronically-operated, air-cooled air-conditioning and air-conditioning heat pump equipment having cooling capacity greater than, or equal to, two hundred forty thousand (240,000) Btu/hour but less than seven hundred sixty thousand (760,000) Btu/hour that is built as a package and shipped as a whole to end-user sites.
  16. “Low-voltage dry-type distribution transformer” means a transformer that:
    1. Has an input voltage of six hundred volts (600 V) or less;
    2. Is air-cooled;
    3. Does not use oil as a coolant; and
    4. Is rated for operation at a frequency of sixty hertz (60 Hz).
  17. “Mercury-vapor lamp” means a high-intensity discharge lamp in which the major portion of the light is produced by radiation from mercury operating at a partial pressure in excess of one hundred thousand (100,000) PA (approximately 1 atm). This includes clear, phosphor-coated, and self-ballasted lamps.
  18. “Metal-halide lamp” means a high-intensity discharge lamp in which the major portion of the light is produced by radiation of metal halides and their products of dissociation, possibly in combination with metallic vapors.
  19. “Metal-halide lamp fixture” means a lamp fixture designed to be operated with a metal-halide lamp and a ballast for a metal-halide lamp.
  20. “Probe-start metal-halide ballast” means a ballast used to operate metal-halide lamps that does not contain an igniter and instead starts lamps by using a third starting electrode “probe” in the arc tube.
  21. “Pulldown refrigerator” means a commercial refrigerator with doors that, when fully loaded with twelve-ounce (12) canned beverages at ninety (90) degrees F, can cool these beverages to an average stable temperature of thirty-eight (38) degrees F in twelve (12) hours or less.
  22. “Residential boiler” means a self-contained appliance for supplying steam or hot water, that uses natural gas, propane, or home heating oil and has a heat input rate of less than three hundred thousand (300,000) Btu per hour.
  23. “Residential furnace” means a self-contained space heater designed to supply heated air through ducts of more than ten inches (10") length and utilizes only single-phase electric current, or single-phase electric current or DC current in conjunction with natural gas, propane, or home-heating oil, and that:
    1. Is designed to be the principal heating source for the living space of one or more residences;
    2. Is not contained within the same cabinet with a central air conditioner whose rated cooling capacity is above sixty-five thousand (65,000) Btu per hour; and
    3. Has a heat input rate of less than two hundred twenty-five thousand (225,000) Btu per hour.
  24. “Single-voltage external AC to DC power supply” means a device that:
    1. Is designed to convert line-voltage AC input into lower-voltage DC output;
    2. Is able to convert to one DC output voltage at a time;
    3. Is sold with, or intended to be used with, a separate end-use product that constitutes the primary power load;
    4. Is contained within a separate physical enclosure from the end-use product;
    5. Is connected to the end-use product via a removable or hard-wired male/female electrical connection, cable, cord, or other wiring;
    6. Does not have batteries or battery packs, including those that are removable, that physically attach directly to the power supply unit;
    7. Does not have a battery chemistry or type selector switch and indicator light; or
    8. Has a nameplate output power less than or equal to two hundred fifty watts (250 W).
  25. “State-regulated incandescent reflector lamp” means a lamp, not colored or designed for rough or vibration service applications, with an inner reflective coating on the outer bulb to direct the light, an E26 medium screw base, a rated voltage or voltage range that lies at least partially within one hundred fifteen to one hundred thirty volts (115 V to 130 V), and that falls into either of the following categories: a blown PAR (BPAR), bulged reflector (BR), or elliptical reflector (ER) bulb shape or similar bulb shape with a diameter equal to or greater than two and one-quarter inches (2.25"); or a reflector (R), parabolic aluminized reflector (PARA) bulged reflector (BR) or similar bulb shape with a diameter of two and one-quarter inches to two and three-quarter inches (2.25” to 2.75"), inclusive.
  26. “Torchiere” means a portable electric lighting fixture with a reflective bowl that directs light upward onto a ceiling so as to produce indirect illumination on the surfaces below. A torchiere may include downward-directed lamps in addition to the upward, indirect illumination.
  27. “Traffic signal module” means a standard eight-inch (8) (two hundred millimeter (200 mm)) or twelve-inch (12) (three hundred millimeter (300 mm)) traffic signal indication, consisting of a light source, a lens, and all other parts necessary for operation.
  28. “Transformer” means a device consisting of two (2) or more coils of insulated wire and that is designed to transfer alternating current by electromagnetic induction from one coil to another to change the original voltage or current value. The term “transformer” does not include:
    1. Transformers with multiple voltage taps, with the highest voltage tap equaling at least twenty percent (20%) more than the lowest voltage tap; or
    2. Transformers, such as those commonly known as drive transformers, rectifier transformers, auto-transformers, uninterruptible power system transformers, impedance transformers, regulating transformers, sealed and nonventilating transformers, machine tool transformers, welding transformers, grounding transformers, or testing transformers, that are designed to be used in a special purpose application and are unlikely to be used in general purpose applications.
  29. “Unit heater” means a self-contained, vented, fan-type commercial space heater that uses natural gas or propane, and that is designed to be installed without ducts within a heated space, except that such term does not include any products covered by federal standards established pursuant to 42 U.S.C. § 6291 and subsequent sections or any product that is a direct vent, forced flue heater with a sealed combustion burner.
  30. “Walk-in refrigerator” and “walk-in freezer” mean a space, designed for the purpose of storing and/or merchandising food, beverages, and/or ice, that is refrigerated to temperatures, respectively, at or above and below thirty-two (32) degrees F that can be walked into.
  31. “Water dispenser” means a factory-made assembly that mechanically cools and heats potable water and that dispenses the cooled or heated water by integral or remote means.

History of Section. P.L. 2005, ch. 136, § 1; P.L. 2005, ch. 146, § 1; P.L. 2006, ch. 177, § 1; P.L. 2006, ch. 288, § 1; P.L. 2020, ch. 79, art. 1, § 22.

Compiler's Notes.

Chapter 27.1 of this title to be construed to supersede any conflicting provisions of this chapter, see § 39-27.1-1 et seq.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

39-27-4. Scope.

  1. The provisions of this chapter apply to the following types of new products sold, offered for sale, or installed in the state:
    1. Automatic commercial icemakers;
    2. Commercial clothes washers;
    3. Commercial pre-rinse spray valves;
    4. Commercial refrigerators, freezers, and refrigerator-freezers;
    5. High-intensity discharge lamp ballasts;
    6. Illuminated exit signs;
    7. Large packaged air-conditioning equipment;
    8. Low-voltage dry-type distribution transformers;
    9. Metal-halide lamp fixtures;
    10. Single-voltage external AC to DC power supplies;
    11. Torchieres;
    12. Traffic signal modules; and
    13. Unit heaters.
  2. The provisions of this chapter also apply to the following types of new products sold, offered for sale, or installed in the state:
    1. Bottle-type water dispensers;
    2. Commercial hot food holding cabinets;
    3. Residential boilers and residential furnaces;
    4. State-regulated incandescent reflector lamps; and
    5. Walk-in refrigerators and walk-in freezers.
  3. The provisions of this chapter do not apply to:
    1. New products manufactured in the state and sold outside the state;
    2. New products manufactured outside the state and sold at wholesale inside the state for final retail sale and installation outside the state;
    3. Products installed in mobile manufactured homes at the time of construction; or
    4. Products designed expressly for installation and use in recreational vehicles.

History of Section. P.L. 2005, ch. 136, § 1; P.L. 2005, ch. 146, § 1; P.L. 2006, ch. 177, § 1; P.L. 2006, ch. 288, § 1.

Compiler's Notes.

Chapter 27.1 of this title to be construed to supersede any conflicting provisions of this chapter, see § 39-27.1-1 et seq.

39-27-5. Efficiency standards.

  1. Not later than June 1, 2006, the commission, in consultation with the state building commissioner and the chief of energy and community services, shall adopt regulations, in accordance with the provisions of chapter 35 of title 42, establishing minimum efficiency standards for the types of new products set forth in § 39-27-4(a) . The regulations shall provide for the following minimum efficiency standards:
    1. Automatic commercial icemakers shall meet the energy efficiency requirements shown in table A-7 of § 1605.3 of the California Code of Regulations, Title 20: Division 2, Chapter 4, Article 4: Appliance Efficiency Regulations as adopted on December 15, 2004.
    2. Commercial clothes washers shall meet the requirements shown in Table P-4 of § 1605.3 of the California Code of Regulations, Title 20: Division 2, Chapter 4, Article 4: Appliance Efficiency Regulations in effect on December 15, 2004.
    3. Commercial pre-rinse spray valves shall have a flow rate equal to or less than one and six-tenths gallons (1.6 gals.) per minute.
    4. Commercial refrigerators, freezers, and refrigerator-freezers shall meet the minimum efficiency requirements shown in Table A-6 of § 1605.3 of the California Code of Regulations, Title 20: Division 2, Chapter 4, Article 4: Appliance Efficiency Regulations as adopted on December 15, 2004, except that pulldown refrigerators with transparent doors shall meet a requirement five percent (5%) less stringent than shown in the California regulations.
    5. High-intensity discharge lamp ballasts shall not be designed and marketed to operate a mercury vapor lamp.
    6. Illuminated exit signs shall have an input power demand of five watts (5 W) or less per illuminated face.
    7. Large packaged air-conditioning equipment shall meet a minimum energy efficiency ratio of:
      1. Ten (10.0) for air conditioning without an integrated heating component or with electric resistance heating integrated into the unit;
      2. Nine and eight tenths (9.8) for air conditioning with heating other than electric resistance integrated into the unit;
      3. Nine and five tenths (9.5) for air conditioning with heating other than electric resistance integrated heating component or with electric resistance heating integrated into the unit;
      4. Nine and three tenths (9.3) for air-conditioning heat pump equipment with heating other than electric resistance integrated into the unit. Large packaged air-conditioning heat pumps shall meet a minimum coefficient of performance in the heating mode of three and two tenths (3.2) (measured at a high temperature rating of forty-seven (47) degrees F db).
    8. Low-voltage dry-type distribution transformers shall meet the Class 1 efficiency levels for low-voltage distribution transformers specified in Table 4-2 of the “Guide for Determining Energy Efficiency for Distribution Transformers” published by the National Electrical Manufacturers Association (NEMA Standard TP-1-2002).
    9. Metal-halide lamp fixtures that operate in a vertical position and are designed to be operated with lamps rated greater than or equal to one hundred fifty watts (150 W) but less than or equal to five hundred watts (500 W) shall not contain a probe-start metal-halide lamp ballast.
    10. Single-voltage external AC to DC power supplies shall meet the tier-one energy-efficiency requirements shown in Table U-1 of § 1605.3 of the California Code of Regulations, Title 20: Division 2, Chapter 4, Article 4: Appliance Efficiency Regulations as adopted on December 15, 2004. This standard applies to single-voltage AC to DC power supplies that are sold individually and to those that are sold as a component of or in conjunction with another product. Single-voltage external AC to DC power supplies that are made available by a product manufacturer as service parts or spare parts for its products manufactured prior to January 1, 2008, shall be exempt from this provision.
    11. Torchieres shall not use more than one hundred ninety watts (190 W). A torchiere shall be deemed to use more than one hundred ninety watts (190 W) if any commercially available lamp or combination of lamps can be inserted in its socket(s) and cause the torchiere to draw more than one hundred ninety watts (190 W) when operated at full brightness.
    12. Traffic signal modules shall meet the product specification of the “Energy Star Program Requirements for Traffic Signals” developed by the U.S. Environmental Protection Agency that took effect in February 2001 and shall be installed with compatible, electronically-connected signal-control interface devices and conflict-monitoring systems.
    13. Unit heaters shall be equipped with an intermittent ignition device and shall have either power venting or an automatic flue damper.
  2. Not later than June 1, 2007, the commission, in consultation with the state building commissioner and the chief of energy and community services, shall adopt regulations, in accordance with the provisions of chapter 35 of title 42, establishing minimum efficiency standards for the types of new products set forth in § 39-27-4(b) . The regulations shall provide for the following minimum efficiency standards.
    1. Bottle-type water dispensers designed for dispensing both hot and cold water shall not have standby energy consumption greater than one and two-tenths kilowatt-hours (1.2 KWh) per day.
    2. Commercial hot food holding cabinets shall have a maximum idle energy rate of forty watts (40 W) per cubic foot of interior volume.
      1. Residential furnaces and residential boilers shall comply with the following Annual Fuel Utilization Efficiency (AFUE) and electricity ratio values:
      2. The chief of energy and community services shall adopt rules to provide for exemptions from compliance with the foregoing residential furnace or residential boiler AFUE standards at any building, site, or location where complying with the standards would be in conflict with any local zoning ordinance, fire code, building or plumbing code, or other rule regarding installation and venting of residential furnaces or residential boilers.
      3. The provisions of subsection (b) shall be effective upon determination by the chief of energy and community services that the same or substantial corresponding standards have been enacted in two (2) New England states.
      1. State-regulated incandescent reflector lamps shall meet the minimum average lamp efficacy requirements for federally-regulated incandescent reflector lamps contained in 42 U.S.C. § 6295(i)(1)(B).
      2. The following types of incandescent reflector lamps are exempt from these requirements:
        1. Lamps, rated at fifty watts (50 W) or less of the following types: BR30, BR40, ER30, and ER40;
        2. Lamps, rated at sixty-five watts (65 W) of the following types: BR30, BR40, and ER40; and
        3. R20 lamps of forty-five watts (45 W) or less.
      1. Walk-in refrigerators and walk-in freezers with the applicable motor types shown in the table below shall include the required components shown.
      2. In addition to the requirements in subsection (b)(5)(i), walk-in refrigerators and walk-in freezers with transparent reach-in doors shall meet the following requirements: transparent reach-in doors shall be of triple-pane glass with either heat-reflective treated glass or gas fill; if the appliance has an anti-sweat heater without anti-sweat controls, then: the appliance shall have a total door rail, glass, and frame heater power draw of no more than forty watts (40 W) if it is a freezer or seventeen watts (17 W) if it is a refrigerator per foot of door frame width; and if the appliance has an anti-sweat heater with anti-sweat heat controls, and the total door rail, glass, and frame heater power draw is more than forty watts (40 W) if it is a freezer or seventeen watts (17 W) if it is a refrigerator per foot of door frame width, then: the anti-sweat heat controls shall reduce the energy use of the anti-sweat heater in an amount corresponding to the relative humidity in the air outside the door or to the condensation on the inner-glass pane.

Product Type Minimum AFUE Maximumelectricity ratio Natural gas and propane-fired furnaces 90% 2.0% Oil-fired furnaces>94,000 Btu/hour in capacity 83% 2.0% Oil-fired furnaces>94,000 Btu/hour in capacity 83% 2.3% Natural gas and oil, and propane-fired hot water residential boilers 84% Not applicable Natural gas, oil, and propane-fired steam residential boilers 82% Not applicable

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MOTOR Type Required Components All Interior lights: light sources with an efficacy of forty-five (45) lumens per watt or more, including ballast losses (if any). This efficacy standard does not apply to LED light sources until January 1, 2010. All Automatic door closers that firmly close all reach-in doors. All Automatic door closers that firmly close all walk-in doors no wider than 3.9 feet and no higher than 6.9 feet that have been closed to within one inch of full closure. All Wall, ceiling, and door insulation at least R-28 for refrigerators and at least R-34 for freezers All Floor insulation at least R-28 for freezers (no requirements for refrigerators) Condenser fan motors of under one horsepower Electronically commutated motors, Permanently split capacitor-type motors Polyphase motors of one half (1/2) horsepower or more Single-phase evaporator fan motors of under one horsepower and less than four hundred sixty (460) volts Electronically commutated motors

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History of Section. P.L. 2005, ch. 136, § 1; P.L. 2005, ch. 146, § 1; P.L. 2006, ch. 177, § 1; P.L. 2006, ch. 288, § 1; P.L. 2020, ch. 79, art. 1, § 22.

Compiler's Notes.

Chapter 27.1 of this title to be construed to supersede any conflicting provisions of this chapter, see § 39-27.1-1 et seq.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

39-27-6. Implementation.

  1. No new commercial clothes washer, commercial pre-rinse spray valve, high-intensity discharge lamp ballast, illuminated exit sign, low-voltage dry-type distribution transformer, torchiere, traffic signal module, or unit heater after January 1, 2007, may be sold or offered for sale in the state unless the efficiency of the new product meets or exceeds the efficiency standards set forth in the regulations adopted pursuant to § 39-27-5 . No bottle-type water dispenser, commercial hot food holding cabinet, metal-halide lamp fixture, single-voltage external AC to DC power supply, state-regulated incandescent reflector lamp, or walk-in refrigerator or walk-in freezer manufactured on or after January 1, 2008, may be sold or offered for sale in the state unless the efficiency of the new product meets or exceeds the efficiency standards set forth in the regulations adopted pursuant to § 39-27-5 . No new automatic commercial icemaker, commercial refrigerator, refrigerator-freezer, or freezer or large packaged air-conditioning equipment manufactured on or after January 1, 2010, may be sold or offered for sale in the state unless the efficiency of the new product meets or exceeds the efficiency standards set forth in the regulations adopted pursuant to § 39-27-5.
  2. No later than six (6) months after the effective date of this chapter, the chief of energy and community services, in consultation with the attorney general, shall determine if implementation of state standards for residential furnaces and residential boilers requires a waiver from federal preemption. If the chief of energy and community services determines that a waiver from federal preemption is not needed, then no new residential furnace or residential boiler manufactured on or after January 1, 2008, or the date that is one year after the date of the determination, if later, may be sold or offered for sale in the state unless the efficiency of the new product meets or exceeds the efficiency standards set forth in the regulations adopted pursuant to § 39-27-5 . If the chief of energy and community services determines that a waiver from federal preemption is required, then the chief of energy and community services shall apply for the waiver within one year of the determination and upon approval of such waiver application, the applicable state standards shall go into effect at the earliest date permitted by federal law.
  3. One year after the date upon which sale or offering for sale of certain products is limited pursuant to this section, no new products may be installed for compensation in the state unless the efficiency of the new product meets or exceeds the efficiency standards set forth in the regulations adopted pursuant to § 39-27-5 .

History of Section. P.L. 2005, ch. 136, § 1; P.L. 2005, ch. 146, § 1; P.L. 2006, ch. 177, § 1; P.L. 2006, ch. 288, § 1.

Compiler's Notes.

Chapter 27.1 of this title to be construed to supersede any conflicting provisions of this chapter, see § 39-27.1-1 et seq.

39-27-7. New and revised standards.

The commission may adopt regulations, in accordance with the provisions of chapter 35 of title 42, to establish increased efficiency standards for the products listed in § 39-27-4 . In considering such amended standards, the commission, in consultation with the chief of energy and community services, shall set efficiency standards upon a determination that increased efficiency standards would serve to promote energy conservation in the state and would be cost-effective for consumers who purchase and use such products; provided, that increased efficiency standards shall become effective within one year following the adoption of any amended regulations establishing such increased efficiency standards.

History of Section. P.L. 2005, ch. 136, § 1; P.L. 2005, ch. 146, § 1.

Compiler's Notes.

Chapter 27.1 of this title to be construed to supersede any conflicting provisions of this chapter, see § 39-27.1-1 et seq.

39-27-8. Testing, certification, and enforcement.

  1. The manufacturers of products covered by the chapter shall test samples of their products in accordance with the test procedures adopted pursuant to this chapter or those specified in the state building code. The chief of energy and community services, in consultation with the state building commissioner, shall adopt test procedures for determining the energy efficiency of the products covered by § 39-27-4 if the procedures are not provided for in this section, and § 39-27-5 or in the state building code, except that the test procedure for:
    1. Automatic commercial icemakers shall be the test standard specified by the Air Conditioning and Refrigeration Institute Standard 810-2003, as in effect on January 1, 2005;
    2. Bottle-type water dispensers shall be measured in accordance with the test criteria contained in version 1 of the U.S. Environmental Protection Agency’s “Energy Star Program/Requirement for Bottled Water Coolers,” except units with an integral, automatic timer shall not be tested using Section D, “Timer Usage,” of the test criteria;
    3. Commercial hot food holding cabinets shall be the “idle energy rate-dry test” on ASTM F2140-01, “Standard Test Method for Performance of Hot Food Holding Cabinets” published by ASTM International Interior volume and shall be measured in accordance with the method shown in the U.S. Commercial Hot Food Holding Cabinets as in effect on August 15, 2003; and
    4. Residential furnaces and boilers AFUE shall be measured in accordance with the federal test method for measuring the energy consumption of furnaces and boilers contained in Appendix N to subpart B of part 430, title 10, Code of Federal Regulations. The chief of energy and community services shall use U.S. Department of Energy approved test methods, or in the absence of such test methods, other appropriate nationally recognized test methods. The chief of energy and community services may use updated test methods when new versions of test procedures become available.
  2. Manufacturers of new products covered by § 39-27-4 , except for single-voltage external AC to DC power supplies, high-intensity discharge lamp ballasts, walk-in refrigerators and walk-in freezers, shall certify to the chief of energy and community services that the products are in compliance with the provisions of this chapter. The certifications shall be based on test results. The chief of energy and community services shall promulgate regulations governing the certification of the products and may coordinate with the certification programs of other states and federal agencies.
  3. The chief of energy and community services may test products covered by § 39-27-4 . If the products so tested are found not to be in compliance with the minimum efficiency standards established under § 39-27-5 , the chief of energy and community services shall:
    1. Charge the manufacturer of the product for the cost of product purchase and testing; and
    2. Make information available to the public on products found not to be in compliance with the standards.
  4. With prior notice and at reasonable and convenient hours, the chief of energy and community services may cause periodic inspections to be made of distributors or retailers of new products covered by § 39-27-4 in order to determine compliance with the provisions of this chapter. The chief of energy and community services shall also coordinate in accordance with § 23-27.3-111.7 regarding inspections prior to occupancy of newly constructed buildings containing new products that are also covered by the state building code.
  5. The chief of energy and community services shall investigate complaints received concerning violations of this chapter. Any manufacturer, distributor, or retailer who violates any provision of this chapter shall be issued a warning by the chief of energy and community services for any first violation. Repeat violations shall be subject to a civil penalty of not more than two hundred fifty dollars ($250). Each violation shall constitute a separate offense, and each day that the violation continues shall constitute a separate offense. Penalties assessed under this subsection are in addition to costs assessed under subsection (d) of this section.

History of Section. P.L. 2005, ch. 136, § 1; P.L. 2005, ch. 146, § 1; P.L. 2006, ch. 177, § 1; P.L. 2006, ch. 288, § 1.

Compiler's Notes.

Chapter 27.1 of this title to be construed to supersede any conflicting provisions of this chapter, see § 39-27.1-1 et seq.

39-27-9. Severability of provisions.

The provisions of this chapter shall be severable and if the application of any clause, sentence, paragraph, subdivision, section or part of this chapter shall be adjudged by any court of competent jurisdiction to be invalid, the judgment shall not affect, impair, or invalidate the application of any other clause, sentence, paragraph, subdivision, section or part of this chapter.

History of Section. P.L. 2005, ch. 136, § 1; P.L. 2005, ch. 146, § 1.

Compiler's Notes.

Chapter 27.1 of this title to be construed to supersede any conflicting provisions of this chapter, see § 39-27.1-1 et seq.

Chapter 27.1 Appliance and Equipment Energy and Water Efficiency Standards Act of 2021

39-27.1-1. General purpose.

This chapter establishes minimum efficiency standards for certain products sold or installed in the state. This chapter shall, upon enactment, be construed to supersede any conflicting provisions of chapter 27 of this title, “The Energy and Consumer Savings Act of 2005.”

History of Section. P.L. 2021, ch. 361, § 2, effective July 12, 2021; P.L. 2021, ch. 363, § 2, effective July 12, 2021.

Compiler's Notes.

P.L. 2021, ch. 361, § 2, and P.L. 2021, ch. 363, § 2 enacted identical versions of this chapter.

Legislative Findings.

P.L. 2021, ch. 361, § 1 and P.L. 2021, ch. 363, § 1 provide: “Legislative findings.

“The general assembly finds that:

“(1) Efficiency standards for certain products sold or installed in the state assure consumers and businesses that such products meet minimum efficiency performance levels, thus reducing energy and water waste and saving consumers and businesses money on utility bills.

“(2) Such efficiency standards save energy and thus reduce climate-changing emissions and other environmental impacts associated with the production, distribution, and use of electricity, natural gas, and other fuels.

“(3) Such efficiency standards save water, mitigating the effects of short- and long-term droughts and helping to conserve fresh water supplies.

“(4) Bill savings resulting from more efficient products benefit all consumers but are especially important to low-income families, who spend a disproportionate share of their income on utilities. Efficiency standards also help the state and local economies because bill savings can be spent on local goods and services.

“(5) Energy and water savings help reduce or delay the need for expensive investments in new power plants, transmission lines, and distribution system upgrades, new and expanded gas pipelines, and water and sewer infrastructure improvements.”

39-27.1-2. Definitions.

  1. For purposes of this chapter, the following definitions apply:
    1. “Commercial dishwasher” means a machine designed to clean and sanitize plates, pots, pans, glasses, cups, bowls, utensils, and trays by applying sprays of detergent solution (with or without blasting media granules) and a sanitizing rinse.
    2. “Commercial fryer” means an appliance, including a cooking vessel, in which oil is placed to such a depth that the cooking food is essentially supported by displacement of the cooking fluid rather than by the bottom of the vessel. Heat is delivered to the cooking fluid by means of an immersed electric element of band-wrapped vessel (electric fryers) or by heat transfer from gas burners through either the walls of the fryer or through tubes passing through the cooking fluid (gas fryers).
    3. “Commercial hot-food holding cabinet” means a heated, fully enclosed compartment with one or more solid or transparent doors designed to maintain the temperature of hot food that has been cooked using a separate appliance. “Commercial hot-food holding cabinet” does not include heated glass merchandizing cabinets, drawer warmers, or cook-and-hold appliances.
    4. “Commercial oven” means a chamber designed for heating, roasting, or baking food by conduction, convection, radiation, and/or electromagnetic energy.
    5. “Commercial steam cooker,” also known as “compartment steamer,” means a device with one or more food-steaming compartments in which the energy in the steam is transferred to the food by direct contact. Models may include countertop models, wall-mounted models, and floor models mounted on a stand, pedestal, or cabinet-style base.
    6. “Commissioner” means the commissioner of energy resources at the Rhode Island office of energy resources, appointed pursuant to § 42-140-4 .
    7. “Compensation” means money or any other valuable thing, regardless of form, received or to be received by a person for services rendered.
    8. “Electric vehicle supply equipment” means the conductors, including the ungrounded, grounded, and equipment grounding conductors, the electric vehicle connectors, attachment plugs, and all other fittings, devices, power outlets, or apparatuses installed specifically for the purpose of delivering energy from the premises wiring to the electric vehicle. Excludes conductors, connectors, and fittings that are part of a vehicle.
    9. The following definitions refer to “faucets”:
      1. “Faucet” means a private lavatory faucet, residential kitchen faucet, metering faucet, public lavatory faucet, or replacement aerator for a private lavatory, public lavatory, or residential kitchen faucet;
      2. “Public lavatory faucet” means a fitting designed to be installed in nonresidential bathrooms that are exposed to walk-in traffic;
      3. “Metering faucet” means a fitting that, when turned on, will gradually shut itself off over a period of several seconds; and
      4. “Replacement aerator” means an aerator sold as a replacement, separate from the faucet to which it is intended to be attached.
      5. “Urinal” means a plumbing fixture that receives only liquid body waste and conveys the waste through a trap into a drainage system; and
      6. “Water closet” means a plumbing fixture having a water-containing receptor that receives liquid and solid body waste through an exposed integral trap into a drainage system.
    10. The following definitions refer to “gas fireplaces”: (i) “Decorative gas fireplace” means a vented fireplace, including appliances that are freestanding, recessed, zero clearance, or a gas fireplace insert, that is fueled by natural gas or propane, is marked for decorative use only, and is not equipped with a thermostat or intended for use as a heater; (ii) “Gas fireplace” means a decorative gas fireplace or a heating gas fireplace; and (iii) “Heating gas fireplace” means a vented fireplace, including appliances that are freestanding, recessed, zero clearance, or a gas fireplace insert, that is fueled by natural gas or propane and is not a decorative fireplace.
    11. “Portable electric spa” means a factory-built electric spa or hot tub that may or may not include any combination of integral controls, water heating, or water circulating equipment.
    12. “Residential ventilating fan” means a ceiling or wall-mounted fan, or remotely mounted in-line fan, designed to be used in a bathroom or utility room for the purpose of moving air from inside the building to the outdoors.
    13. The following definitions refer to “showerheads”: (i) “Showerhead” means an accessory to a supply fitting for spraying water onto a bather, typically from an overhead position and includes a hand-held showerhead, but does not include a safety showerhead; and

      (ii) “Hand-held showerhead” means a showerhead that can be held or fixed in place for the purpose of spraying water onto a bather and that is connected to a flexible hose.

    14. The following definitions refer to “spray sprinkler bodies”:

      (i) “Pressure regulator” means a device that maintains constant operating pressure immediately downstream from the device, given higher pressure upstream; and

      (ii) “Spray sprinkler body” means the exterior case or shell of a sprinkler incorporating a means of connection to the piping system designed to convey water to a nozzle or orifice.

    15. The following definitions refer to “urinals” and “water closets”:

      (i) “Dual-flush effective flush volume” means the average flush volume of two (2) reduced flushes and one full flush;

      (ii) “Dual-flush water closet” means a water closet incorporating a feature that allows the user to flush the water closet with either a reduced or a full volume of water;

      (iii) “Plumbing fixture” means an exchangeable device that connects to a plumbing system to deliver and drain away water and waste;

      (iv) “Trough-type urinal” means a urinal designed for simultaneous use by two (2) or more persons;

    16. The following definitions refer to “water coolers”:

      (i) “Cold only units” dispense cold water only;

      (ii) “Cook and cold units” dispense both cold and room-temperature water;

      (iii) “Hot and cold units” dispense both hot and cold water. Provided further that certain units also offer room-temperature water;

      (iv) “On demand” means the water cooler heats water as it is requested, which typically takes a few minutes to deliver;

      (v) “Storage-type” means thermally conditioned water is stored in a tank in the water cooler and is available instantaneously. Point-of-use, dry storage compartment, and bottled water coolers are included in this category; and

      (vi) “Water cooler” means a freestanding device that consumes energy to cool and/or heat potable water.

History of Section. P.L. 2021, ch. 361, § 2, effective July 12, 2021; P.L. 2021, ch. 363, § 2, effective July 12, 2021.

39-27.1-3. Scope.

  1. The provisions of this chapter apply to:
    1. Commercial dishwashers;
    2. Commercial fryers;
    3. Commercial hot-food holding cabinets;
    4. Commercial ovens;
    5. Commercial steam cookers;
    6. Electric vehicle supply equipment;
    7. Faucets;
    8. Gas fireplaces;
    9. Portable electric spas;
    10. Residential ventilating fans;
    11. Showerheads;
    12. Spray sprinkler bodies;
    13. Urinals;
    14. Water closets; and
    15. Water coolers.
  2. The provisions of this chapter do not apply to:
    1. New products manufactured in the state and sold outside the state;
    2. New products manufactured outside the state and sold at wholesale inside the state for final retail sale and installation outside the state;
    3. Products installed in mobile manufactured homes at the time of construction; or
    4. Products designed expressly for installation and use in recreational vehicles.

History of Section. P.L. 2021, ch. 361, § 2, effective July 12, 2021; P.L. 2021, ch. 363, § 2, effective July 12, 2021.

39-27.1-4. Standards.

  1. Not later than one year after the date of enactment of this chapter, the commissioner shall adopt regulations, in accordance with the provisions of chapter 35 of title 42, establishing minimum efficiency standards for the types of new products set forth in § 39-27.1-3 .
  2. The regulations shall provide for the following minimum efficiency standards:
    1. Commercial dishwashers included in the scope of the ENERGY STAR Program Requirements Product Specification for Commercial Dishwashers, Version 2.0, shall meet the qualification criteria of that specification;
    2. Commercial fryers included in the scope of the ENERGY STAR Program Requirements Product Specification for Commercial Fryers, Version 2.0, shall meet the qualification criteria of that specification;
    3. Commercial hot-food holding cabinets shall meet the qualification criteria of the ENERGY STAR Program Requirements Product Specification for Commercial Hot Food Holding Cabinets, Version 2.0;
    4. Commercial ovens included in the scope of the ENERGY STAR Program Requirements Product Specification for Commercial Ovens, Version 2.2, shall meet the qualification criteria of that specification;
    5. Commercial steam cookers shall meet the requirements of the ENERGY STAR Program Requirements Product Specification for Commercial Steam Cookers, Version 1.2;
    6. Electric vehicle supply equipment included in the scope of the ENERGY STAR Program Requirements Product Specification for Electric Vehicle Supply Equipment, Version 1.0 (Rev. Apr-2017), shall meet the qualification criteria of that specification;
    7. Faucets, except for metering faucets, shall meet the standards shown in this subsection when tested in accordance with Appendix S to Subpart B of Part 430 of Title 10 of the Code of Federal Regulations and compliance with those requirements shall be — “Uniform Test Method for Measuring the Water Consumption of Faucets and Showerheads” — as in effect on January 1, 2020:
      1. Lavatory faucets and replacement aerators shall not exceed a maximum flow rate of one and five-tenths gallons per minute (1.5 gpm) at sixty pounds per square inch (60 psi);
      2. Residential kitchen faucets and replacement aerators shall not exceed a maximum flow rate of one and eight-tenths gallons per minute (1.8 gpm) at sixty pounds per square inch (60 psi), with optional temporary flow of two and two-tenths gallons per minute (2.2 gpm), provided they default to a maximum flow rate of one and eight-tenths gallons per minute (1.8 gpm) at sixty pounds per square inch (60 psi) after each use; and
      3. Public lavatory faucets and replacement aerators shall not exceed a maximum flow rate of five-tenths gallons per minute (0.5 gpm) at sixty pounds per square inch (60 psi);
      4. Heating gas fireplaces shall have a fireplace efficiency greater than or equal to fifty percent (50%) when tested in accordance with CSA P.4.1-15, “Testing Method for Measuring Annual Fireplace Efficiency”;
    8. Gas fireplaces shall comply with the following requirements:

      (i) Gas fireplaces shall be capable of automatically extinguishing any pilot flame when the main gas burner flame is established and when it is extinguished;

      (ii) Gas fireplaces must prevent any ignition source for the main gas burner flame from operating continuously for more than seven (7) days;

      (iii) Decorative gas fireplaces must have a direct vent configuration, unless marked for replacement use only; and

    9. Portable electric spas shall meet the requirements of the “American National Standard for Portable Electric Spa Energy Efficiency” (ANSI/APSP/ICC 14-2019);
    10. In-line residential ventilating fans shall have a fan motor efficacy of no less than two and eight-tenths (2.8) cubic feet per minute per watt. All other residential ventilating fans shall have a fan motor efficacy of no less than one and four-tenths (1.4) cubic feet per minute per watt for airflows less than ninety (90) cubic feet per minute and no less than two and eight-tenths (2.8) cubic feet per minute per watt for other airflows when tested in accordance with Home Ventilation Institute Publication 916 “HVI Airflow Test Procedure”;
    11. Showerheads shall not exceed a maximum flow rate of two gallons per minute (2.0 gpm) at eighty pounds per square inch (80 psi) when tested in accordance with Appendix S to Subpart B of Part 430 of Title 10 of the Code of Federal Regulations and compliance with those requirements shall be — “Uniform Test Method for Measuring the Water Consumption of Faucets and Showerheads” — as in effect on January 1, 2020;
    12. Spray sprinkler bodies that are not specifically excluded from the scope of the WaterSense Specification for Spray Sprinkler Bodies, Version 1.0, shall include an integral pressure regulator and shall meet the water efficiency and performance criteria and other requirements of that specification;
    13. Urinals and water closets, other than those designed and marketed exclusively for use at prisons or mental health facilities, shall meet the standards shown in subsections (b)(13)(i) through (b)(13)(iv) of this section when tested in accordance with Appendix T to Subpart B of Part 430 of Title 10 of the Code of Federal Regulations — “Uniform Test Method for Measuring the Water Consumption of Water Closets and Urinals” — as in effect on January 1, 2020, and water closets shall pass the waste extraction test for water closets (Section 7.9) of the American Society of Mechanical Engineers (ASME) A112.19.2/CSA B45.1-2018:

      (i) Wall-mounted urinals, except for trough-type urinals, shall have a maximum flush volume of five-tenths (0.5) gallons per flush;

      (ii) Floor-mounted urinals, except for trough-type urinals, shall have a maximum flush volume of five-tenths (0.5) gallons per flush;

      (iii) Water closets, except for dual-flush tank-type water closets, shall have a maximum flush volume of one and twenty-eight hundredths (1.28) gallons per flush; and

      (iv) Dual-flush tank-type water closets shall have a maximum dual flush effective flush volume of one and twenty-eight hundredths (1.28) gallons per flush;

    14. Water coolers included in the scope of the ENERGY STAR Program Requirements Product Specification for Water Coolers, Version 2.0, shall have on mode with no water draw energy consumption less than or equal to the following values as measured in accordance with the test requirements of that program:

      (i) Sixteen hundredths kilowatt hours (0.16 KWh) per day for cold-only units and cook and cold units;

      (ii) Eighty-seven hundredths kilowatt hours (0.87 KWh) per day for storage type hot and cold units; and

      (iii) Eighteen hundredths kilowatt hours (0.18 KWh) per day for on demand hot and cold units.

History of Section. P.L. 2021, ch. 361, § 2, effective July 12, 2021; P.L. 2021, ch. 363, § 2, effective July 12, 2021.

Legislative Findings.

P.L. 2021, ch. 361, § 1 and P.L. 2021, ch. 363, § 1 provide: “Legislative findings.

“The general assembly finds that:

“(1) Efficiency standards for certain products sold or installed in the state assure consumers and businesses that such products meet minimum efficiency performance levels, thus reducing energy and water waste and saving consumers and businesses money on utility bills.

“(2) Such efficiency standards save energy and thus reduce climate-changing emissions and other environmental impacts associated with the production, distribution, and use of electricity, natural gas, and other fuels.

“(3) Such efficiency standards save water, mitigating the effects of short- and long-term droughts and helping to conserve fresh water supplies.

“(4) Bill savings resulting from more efficient products benefit all consumers but are especially important to low-income families, who spend a disproportionate share of their income on utilities. Efficiency standards also help the state and local economies because bill savings can be spent on local goods and services.

“(5) Energy and water savings help reduce or delay the need for expensive investments in new power plants, transmission lines, and distribution system upgrades, new and expanded gas pipelines, and water and sewer infrastructure improvements.”

39-27.1-5. Implementation.

  1. No commercial dishwasher, commercial fryer, commercial hot-food holding cabinet, commercial oven, commercial steam cooker, electric vehicle supply equipment, faucet, gas fireplace, portable electric spa, residential ventilating fan, showerhead, spray sprinkler body, urinal, water closet, or water cooler manufactured on or after January 1, 2023, may be sold or offered for sale, lease, or rent in the state unless the new product meets the requirements of the standards provided in this chapter.
  2. One year after the date upon which the sale or offering for sale of certain products becomes subject to the requirements of subsection (a) of this section, no such products may be installed for compensation in the state unless the efficiency of the new product meets or exceeds the efficiency standards provided in § 39-27.1-4 .

History of Section. P.L. 2021, ch. 361, § 2, effective July 12, 2021; P.L. 2021, ch. 363, § 2, effective July 12, 2021.

39-27.1-6. New and revised standards.

The commissioner may adopt regulations, in accordance with the provisions of chapter 35 of title 42, to establish increased efficiency standards for the products listed or incorporated in § 39-27.1-3 . In considering the new or amended standards, the commissioner shall set efficiency standards upon a determination that increased efficiency standards would serve to promote energy or water conservation in the state and would be cost effective for consumers who purchase and use these new products; provided that, no new or increased efficiency standards shall become effective within one year following the adoption of any amended regulations establishing such increased efficiency standards.

History of Section. P.L. 2021, ch. 361, § 2, effective July 12, 2021; P.L. 2021, ch. 363, § 2, effective July 12, 2021.

39-27.1-7. Testing — Certification — Labeling — Enforcement.

  1. The manufacturers of products covered by this chapter shall test samples of their products in accordance with the test procedures adopted pursuant to this chapter. The commissioner may adopt updated test methods when new versions of test procedures become available.
  2. Manufacturers of new products covered by § 39-27.1-3 shall certify to the commissioner that  the products are in compliance with the provisions of this chapter.  The certifications shall be based on test results. The commissioner shall promulgate regulations governing the certification of  the products and shall coordinate with the certification programs of other states and federal agencies with similar standards.
  3. Manufacturers of new products covered by § 39-27.1-3 shall identify each product offered for sale or installation in the state as in compliance with the provisions of this chapter by means of a mark, label, or tag on the product and packaging at the time of sale or installation. The commissioner shall promulgate regulations governing the identification of  the products and packaging, which shall be coordinated to the greatest practical extent with the labeling programs of other states and federal agencies with equivalent efficiency standards. The commissioner shall allow the use of existing marks, labels, or tags,  that connote compliance with the efficiency requirements of this chapter.
  4. The commissioner may test products covered by § 39-27.1-3 . If products so tested are found not to be in compliance with the minimum efficiency standards established under § 39-27.1-4 , the commissioner shall:
    1. Charge the manufacturer of such product for the cost of product purchase and testing; and
    2. Make information available to the attorney general and the public on products found not to be in compliance with the standards.
  5. With prior notice and at reasonable and convenient hours, the commissioner may cause periodic inspections to be made of distributors or retailers of new products covered by § 39-27.1-3 in order to determine compliance with the provisions of this chapter. The commissioner shall also coordinate with the state building code standards committee regarding inspections prior to occupancy of newly constructed buildings containing new products that are also covered by chapter 27.3 of title 23.
  6. The commissioner shall investigate complaints received concerning violations of this chapter and shall report the results of  the investigations to the attorney general. The attorney general may institute proceedings to enforce the provisions of this chapter. Any manufacturer, distributor, or retailer, or any person who installs a product covered by this chapter for compensation, who or that violates any provision of this chapter shall be issued a warning by the commissioner for any first violation and subject to a civil penalty of up to one hundred dollars ($100) for each offense. Repeat violations shall be subject to a civil penalty of not more than five hundred dollars ($500) for each offense. Each violation shall constitute a separate offense, and each day that  the violation continues shall constitute a separate offense. Penalties assessed under this subsection are in addition to costs assessed under subsection (d) of this section.
  7. The commissioner may adopt such further regulations as necessary to ensure the proper implementation and enforcement of the provisions of this chapter.

History of Section. P.L. 2021, ch. 361, § 2, effective July 12, 2021; P.L. 2021, ch. 363, § 2, effective July 12, 2021.

39-27.1-8. Severability.

If any provision of this chapter or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the chapter, which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are declared to be severable.

History of Section. P.L. 2021, ch. 361, § 2, effective July 12, 2021; P.L. 2021, ch. 363, § 2, effective July 12, 2021.

39-27.1-9. Effective date.

This act shall take effect upon passage, and shall be construed to supersede any conflicting provisions of chapter 27 of this title, “The Energy and Consumer Savings Act of 2005.”

History of Section. P.L. 2021, ch. 361, § 2, effective July 12, 2021; P.L. 2021, ch. 363, § 2, effective July 12, 2021.

Chapter 28 Broadband Deployment and Investment Act

39-28-1. Findings.

The Rhode Island general assembly finds that growth and enhancement of services using internet protocol technology provide Rhode Island consumers more choice in voice, data, and video services than at any other time. The proliferation of new technologies and applications and the growing number of providers developing and offering innovative services using internet protocol are due in large part to little barrier to investment, including freedom from state laws and regulations governing traditional telephone service, that these technologies have enjoyed in Rhode Island, as well as recognition that federal law is more uniform in its oversight of internet protocol-enabled services. The economic benefits, including consumer choice, new jobs, and significant capital investment, will be jeopardized and competition minimized by the imposition of traditional state entry, rate, and service-term regulation on voice over internet protocol service and internet protocol-enabled service.

History of Section. P.L. 2009, ch. 86, § 1; P.L. 2009, ch. 94, § 1.

39-28-2. Definitions.

For the purpose of this chapter, the following terms shall have the following meanings:

  1. “Voice over internet protocol service” or “VoIP service” means any service that:
    1. Enables real-time, two-way voice communications that originate from or terminate at the user’s location in internet protocol or any successor protocol;
    2. Uses a broadband connection from the user’s location; and
    3. Permits users generally to receive calls that originate on the public switched telephone network and to terminate calls to the public switched telephone network.
  2. “Internet protocol-enabled service” or “IP-enabled service” means any service, capability, functionality, or application provided, except that as provided in subsection (1), using internet protocol, or any successor protocol, that enables an end-user to send or receive a communication in internet protocol format or any successor format.

History of Section. P.L. 2009, ch. 86, § 1; P.L. 2009, ch. 94, § 1.

39-28-3. Regulation.

Notwithstanding any general or public law to the contrary, and with the exception of the provisions of § 39-28-4 , no department, agency, commission, or political subdivision of Rhode Island shall enact, adopt, or enforce, either directly or indirectly, any law, rule, regulation, ordinance, standard, order, or other provision having the force or effect of law that regulates, or has the effect of regulating, the entry, rates, terms, or conditions of VoIP service or IP-enabled service.

History of Section. P.L. 2009, ch. 86, § 1; P.L. 2009, ch. 94, § 1.

39-28-4. Unaffected fees.

Nothing in this act shall be construed to affect, mandate, or prohibit the assessment of nondiscriminatory enhanced 911 fees, telecommunications relay service fees, or the telecommunications education access fund surcharge under § 39-1-61 .

History of Section. P.L. 2009, ch. 86, § 1; P.L. 2009, ch. 94, § 1.

39-28-5. Rights or obligations of carriers.

Nothing in this act shall be construed to modify or affect the rights or obligations of any carrier pursuant to 47 U.S.C. § 251 or 47 U.S.C. § 252.

History of Section. P.L. 2009, ch. 86, § 1; P.L. 2009, ch. 94, § 1.

39-28-6. Effect on tax obligations or authority.

Nothing in this act shall be construed to modify or affect any tax obligations imposed by § 44-13-4 or the authority of the department of revenue to enforce any such obligations.

History of Section. P.L. 2009, ch. 86, § 1; P.L. 2009, ch. 94, § 1.

39-28-7. No derogation of attorney general.

Nothing in this chapter shall derogate from the common law or statutory authority of the attorney general, nor shall any provision be construed as a limitation on the common law or statutory authority of the attorney general, including, but not limited to, the authority to enforce consumer protection or unfair or deceptive trade practice statutes and regulations.

History of Section. P.L. 2009, ch. 86, § 1; P.L. 2009, ch. 94, § 1.

Chapter 29 Wireless Telephone Regulatory Modernization Act

39-29-1. Jurisdiction over wireless service.

Notwithstanding any general or public law to the contrary, the commission and the division shall have no jurisdiction or authority over wireless service.

History of Section. P.L. 2013, ch. 121, § 3; P.L. 2013, ch. 135, § 3.

39-29-2. Authority unaffected.

Nothing in this chapter shall be construed to modify or affect the jurisdiction or authority of the commission or the division over exchange-access rates or the rights or obligations of any carrier pursuant to 47 U.S.C. § 251 or 47 U.S.C. § 252. Nor shall this chapter be construed to modify or affect the authority of the commission to designate eligible telecommunications carriers pursuant to federal law.

History of Section. P.L. 2013, ch. 121, § 3; P.L. 2013, ch. 135, § 3.

39-29-3. Residential local exchange service.

Nothing in this chapter shall be construed to modify the jurisdiction or authority of the commission or the division over standalone residential local exchange service, meaning residential service that only provides access to E-911 and voice telephone calling wholly within a local service calling area on a measured or unlimited service basis.

History of Section. P.L. 2013, ch. 121, § 3; P.L. 2013, ch. 135, § 3.

39-29-4. Consumer protection.

Nothing in this chapter shall derogate from or be construed as a limitation on the common law or statutory authority of the attorney general to enforce consumer protection or unfair or deceptive trade practice statutes and regulations.

History of Section. P.L. 2013, ch. 121, § 3; P.L. 2013, ch. 135, § 3.

39-29-5. Unaffected fees.

Nothing in this chapter shall be construed to affect, mandate, or prohibit the assessment of nondiscriminatory enhanced 911 fees, telecommunications education access fund fees, or telecommunications relay service fees.

History of Section. P.L. 2013, ch. 121, § 3; P.L. 2013, ch. 135, § 3.

39-29-6. No effect on tax obligations.

Nothing in this chapter shall be construed to modify or affect any tax obligations imposed by § 44-13-4 .

History of Section. P.L. 2013, ch. 121, § 3; P.L. 2013, ch. 135, § 3.

Chapter 30 Municipal Streetlight Investment Act

39-30-1. Findings and purposes.

  1. The Rhode Island general assembly finds and declares that:
    1. Taxpayers are mandated to pay the electric distribution company large sums every year to light municipal and many state-owned streets;
    2. Municipalities are limited in how they can manage this public safety resource because they do not own or control the light fixtures within their borders;
    3. There is no incentive in the applicable electric-rate tariff for installing energy-efficient lighting technologies that may reduce both power and maintenance expenses;
    4. There is no provision in the applicable electric-rate tariff for municipalities to work collectively to manage the maintenance of the streetlighting system; and
    5. Municipalities around the country have saved considerable resources by purchasing their streetlight systems from electric distribution companies and contracting for the maintenance independently.
  2. Now, therefore, the purpose of this chapter is to reduce municipal streetlighting costs and improve service to citizens by:
    1. Improving public safety with streetlights that provide better illumination;
    2. Reducing maintenance costs by allowing municipalities to own the street and area lighting within their borders and to enter into regional maintenance service contracts;
    3. Reducing whole-system cost through municipal ownership and regional management and by eliminating the current “facilities charge”;
    4. Providing innovative and proven technologies for more efficient lighting; and
    5. Providing more responsive service for lighting repairs.

History of Section. P.L. 2013, ch. 245, § 1; P.L. 2013, ch. 367, § 1.

39-30-2. Definitions.

When used in this chapter, the following terms shall have the following meanings:

  1. “Electric distribution company” means a company defined in § 39-1-2(a)(12) , supplying standard-offer service, last-resort service, or any successor service to end-use customers.
  2. “Lighting equipment” means all equipment used to light streets in the municipality, the operation and maintenance of which is currently charged to the municipality, including lighting ballasts, fixtures, and other equipment necessary for the conversion of electric energy into streetlighting service, but excluding the utility poles upon which the lighting equipment is fixed. Lighting equipment shall include, but not be limited to, decorative street and area lighting equipment and solid-state (LED) lighting technologies.
  3. “Office” means the office of energy resources.

History of Section. P.L. 2013, ch. 245, § 1; P.L. 2013, ch. 367, § 1.

39-30-3. Streetlight investment.

  1. Any city or town receiving streetlighting service from an electric distribution company pursuant to an electric-rate tariff providing for the use by such municipality of lighting equipment owned by the electric distribution company, at its option, upon sixty (60) days’ notice to the electric company and to the office, and subject to the provisions of subsections (b) through (e), may:
    1. Convert its streetlighting service from the subject tariff rate to an alternative tariff rate providing for delivery service by the electric distribution company of electric energy, whether or not supplied by the electric distribution company, over distribution facilities and wires owned by the electric distribution company to lighting equipment owned or leased by the municipality, and further providing for the use by the municipality of the space on any pole, lamp post, or other mounting surface previously used by the electric distribution company for the mounting of the lighting equipment. The alternative tariff rate shall provide for monthly bills for street and area lighting that shall include a schedule of energy charges based on a determination of annual kilowatt-hour usage per-lumen rating or nominal wattage of all types of lighting equipment, but shall not include facility, support, maintenance, or accessory charges. The new tariff shall use existing usage calculation methods and existing rates for any currently existing lighting equipment, only setting reasonable new rates for newly adopted lighting equipment. The new tariff shall be structured so as to allow options for various streetlighting controls, including both conventional dusk/dawn operation using photocell or scheduling controls, as well as schedule-based dimming or on/off controls that dim or turn off streetlights during periods of low activity. The electric distribution company, in consultation with the office, shall file the new tariff with the public utilities commission within sixty (60) days of the effective date of this chapter and the commission shall then issue a decision within sixty (60) days after the filing to effectuate the purposes and provisions of this chapter;
    2. Purchase electric energy for use in such municipal lighting equipment from the electric distribution company or any other person allowed by law to provide electric energy; and
    3. After due diligence, including an analysis of the cost impact to the municipality, acquire all of the public street and area lighting equipment of the electric distribution company in the municipality, compensating the electric distribution company as necessary, in accordance with subsection (b).
  2. Any municipality exercising the option to convert its lighting equipment pursuant to subsection (a) must compensate the electric distribution company for the original cost, less depreciation and less amortization, of any active or inactive existing public lighting equipment owned by the electric distribution company and installed in the municipality as of the date the municipality exercises its right of acquisition pursuant to subsection (a), net of any salvage value. Upon such payment, the municipality shall have the right to use, alter, remove, or replace the acquired lighting equipment in any way the municipality deems appropriate. Any contract a municipality enters for the services must require appropriate levels of training and certification of personnel providing pole service for public and worker safety, evidence of twenty-four-hour (24) call capacity, and a committed timely response schedule for both emergency and routine outages. The municipality may also request that the electric company remove any part of such lighting equipment that it does not acquire from the electric distribution company in which case the municipality shall reimburse the electric distribution company the cost of removal by the electric distribution company, along with the original cost, less depreciation, of the removed part, net of any salvage value.
  3. When a municipality exercises its option pursuant to subsection (a), the municipality will notify the electric distribution company of any alterations to street and area lighting inventory within sixty (60) days of the alteration. The electric distribution company will then adjust its monthly billing determinations to reflect the alteration within sixty (60) days.
  4. When a municipality exercises its option pursuant to subsection (a), anyone other than the electric distribution company controlling the right to use space on any pole, lamp post, or other mounting surface previously used by the electric distribution company in the municipality shall allow the municipality to assume the rights and obligations of the electric distribution company with respect to the space for the unexpired term of any lease, easement, or other agreement under which the electric distribution company used the space; provided, however, that:
    1. The municipality is subject to the same terms and conditions that pole owners make to others that attach to the poles; and
    2. In the assumption of the rights and obligations of the electric distribution company by a municipality, the municipality shall in no way or form restrict, impede, or prohibit universal access for the provision of electric and other services.
  5. Any dispute regarding the terms of the alternative tariff, the compensation to be paid the electric distribution company, or any other matter arising in connection with the exercise of the option provided in subsection (a), including, but not limited to, the terms on which space is to be provided to the municipality in accordance with subsection (d), shall be resolved by the division of public utilities and carriers within ninety (90) days of any request for the resolution by the municipality or any person involved in the dispute.
  6. Notwithstanding any general or special law, rule, or regulation to the contrary, any affiliate of any electric distribution company whose streetlighting service is converted by any municipality in accordance with the provisions of this section may solicit and compete for the business of the municipality for the provision of lighting equipment or any other service such as equipment maintenance in connection therewith.

History of Section. P.L. 2013, ch. 245, § 1; P.L. 2013, ch. 367, § 1; P.L. 2020, ch. 79, art. 1, § 23.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

39-30-4. Liberal construction.

The provisions of this chapter shall be liberally construed to give effect to the purposes thereof.

History of Section. P.L. 2013, ch. 245, § 1; P.L. 2013, ch. 367, § 1.

39-30-5. Severability.

If any provision of this chapter or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the chapter that can be given effect without the invalid provision or application, and to this end the provisions of this chapter are declared to be severable.

History of Section. P.L. 2013, ch. 245, § 1; P.L. 2013, ch. 367, § 1.

Chapter 31 Affordable Clean Energy Security Act

39-31-1. Legislative findings.

The general assembly finds and declares:

  1. The state and New England face significant short- and long-term energy system challenges that may undermine the reliable operation of the bulk electric system and spur unsustainable levels of price volatility, and that these challenges may have a substantial impact on energy affordability for ratepayers and undermine the economic competitiveness of our state by serving as a detriment to capital investment and job growth; and
  2. Planned retirements of fossil-fuel, nuclear, and other electric generators, along with lack of new interstate natural-gas-pipeline infrastructure and capacity into the region, may exacerbate these conditions; and
  3. Rhode Island benefits from a holistic energy strategy that pursues both local investment in clean-energy resources, such as energy efficiency and renewable distributed generation, and regional investment in energy infrastructure projects that strengthen system reliability and diversify our supply portfolio. The combination of these strategies advances our economic development interests and environmental quality; and
  4. Rhode Island is committed to the increased use of no- and low-carbon energy resources that diversify our energy supply portfolio, provide affordable energy to consumers, and strengthen our shared quality of life and environment, and new energy infrastructure investments may help facilitate the development and interconnection of these resources; and
  5. Rhode Island is part of an integrated, regional energy system and addressing these challenges, while meeting state policy goals, requires a coordinated, multistate approach built upon collaboration and utilizing appropriate expertise and stakeholder processes of regional entities including, but not limited to, the New England States Committee on Electricity, ISO-New England, Inc., and the New England Power Pool that takes into account affordability, energy security, reliability, fuel diversity, and environmental sustainability.

History of Section. P.L. 2014, ch. 424, § 1; P.L. 2014, ch. 477, § 1.

39-31-2. Purpose.

The purpose of this chapter is to:

  1. Secure the future of the Rhode Island and New England economies, and their shared environment, by making coordinated, cost-effective, strategic investments in energy resources and infrastructure such that the New England states improve energy system reliability and security; enhance economic competitiveness by reducing energy costs to attract new investment and job growth opportunities; and protect the quality of life and environment for all residents and businesses;
  2. Utilize coordinated competitive processes, in collaboration with other New England states and their instrumentalities, to advance strategic investment in energy infrastructure and energy resources, provided that the total energy security, reliability, environmental, and economic benefits to the state of Rhode Island and its ratepayers exceed the costs of the projects, and ensure that the benefits and costs of the energy infrastructure investments are shared appropriately among the New England States; and
  3. Encourage a multistate or regional approach to energy policy that advances the objectives of achieving a reliable, clean-energy future that is consistent with meeting regional greenhouse gas reduction goals at reasonable cost to ratepayers.

History of Section. P.L. 2014, ch. 424, § 1; P.L. 2014, ch. 477, § 1.

39-31-3. Commercially reasonable defined.

When used in this chapter, “commercially reasonable” means terms and pricing that are reasonably consistent with what an experienced power market analyst would expect to see in transactions involving regional energy resources and regional energy infrastructure. Commercially reasonable shall include having a credible project operation date, as determined by the commission, but a project need not have completed the requisite permitting process to be considered commercially reasonable. Commercially reasonable shall require a determination by the commission that the benefits to Rhode Island exceed the cost of the project. The commission shall determine, based on the preponderance of the evidence, that the total energy security, reliability, environmental, and economic benefits to the state of Rhode Island and its ratepayers exceed the costs of such projects. If there is a dispute about whether any terms or pricing are commercially reasonable, the commission shall make the final determination after evidentiary hearings.

History of Section. P.L. 2014, ch. 424, § 1; P.L. 2014, ch. 477, § 1.

39-31-4. Regional energy planning.

  1. Consistent with the purposes of this chapter, and utilizing regional stakeholder processes where appropriate, the office of energy resources, in consultation and coordination with the division of public utilities and carriers, the public utility company that provides electric distribution as defined in § 39-1-2(a)(12) as well as natural gas as defined in § 39-1-2(a)(17) , the New England States Committee on Electricity (NESCOE), ISO-New England, Inc., and the other New England states is authorized to:
    1. Participate in the development and issuance of regional or multistate competitive solicitation(s) for the development and construction of regional electric-transmission projects that would allow for the reliable transmission of large- or small-scale domestic or international hydroelectric power to New England load centers that will benefit the state of Rhode Island and its ratepayers, and such solicitations may be issued by the New England States Committee on Electricity or the electric or natural gas distribution company to further the purposes of this chapter;
    2. Participate in the development and issuance of regional or multistate competitive solicitation(s) for the development and construction of regional electric-transmission projects that would allow for the reliable transmission of eligible renewable energy resources, as defined by § 39-26-5(a) , to New England load centers that will benefit the state of Rhode Island and its ratepayers, and the solicitations may be issued by the New England States Committee on Electricity or the electric or natural gas distribution company to further the purposes of this chapter; and
    3. Participate in the development and issuance of regional or multistate competitive solicitation(s) for the development and construction of regional natural-gas-pipeline infrastructure and capacity that will benefit the state of Rhode Island and its ratepayers by strengthening energy system reliability and security and, in doing so, potentially mitigate energy price volatility that threatens the economic vitality and competitiveness of Rhode Island residents and businesses. The solicitations may be issued by the New England States Committee on Electricity or the electric or natural gas distribution company to further the purposes of this chapter; and the solicitations may request proposals that are priced in increments to allow for the evaluation of project costs and benefits associated with adding various levels of additional, natural gas pipeline capacity into New England and assist with the optimization of energy system reliability, economic, and other benefits consistent with the purposes of this chapter.
    4. As part of any such regional or multistate competitive solicitation processes conducted pursuant to this chapter, the office of energy resources shall work jointly with the division of public utilities and carriers, and with the electric distribution company as appropriate, to identify incremental, natural-gas-pipeline infrastructure and capacity and/or electric-transmission projects that optimize energy reliability, economic, environmental, and ratepayer impacts for Rhode Island, consistent with the legislative findings and purpose of this chapter. The office of energy resources and division of public utilities and carriers shall be authorized to utilize expert consultants, as needed, to assist in any regional, multistate, or state-level determination related to the procurement activities identified in § 39-31-5 .
  2. Prior to any binding commitments being made by any agencies of the state, the electric distribution company, or any other entity that would result in costs being incurred directly, or indirectly, by Rhode Island electric and/or gas consumers through distribution or commodity rates, the office of energy resources and division of public utilities and carriers shall jointly file any energy infrastructure project recommendation(s) with the public utilities commission and may make such filing jointly with the electric or natural gas distribution company as appropriate. The public utilities commission shall consider any such recommendation(s) as specified under § 39-31-7 .
  3. A copy of the filing made under subsection (b) of this section shall be provided to the governor, the president of the senate, the speaker of the house, the department of environmental management, and the commerce corporation.
  4. The electric distribution company shall be provided with a copy of any filing made under this section at least ten (10) business days in advance of its filing with the public utilities commission and the electric or gas distribution utility may file separate comments when the filing is made.
  5. As part of any office of energy resources and division of public utilities and carriers filing made pursuant to this chapter, the agencies shall identify the expected energy reliability, energy security, and ratepayer impacts that are expected to result from commitments being made in connection with the proposed project(s).
  6. The office of energy resources and division of public utilities and carriers reserve the right to determine that energy infrastructure projects submitted in any regional or multistate competitive solicitation process are not in Rhode Island’s energy reliability, energy security, and/or ratepayer interests, and shall make such findings available to the governor, the president of the senate, and the speaker of the house. The electric or gas distribution utility may attach a separate opinion to those findings, at its election.

History of Section. P.L. 2014, ch. 424, § 1; P.L. 2014, ch. 477, § 1; P.L. 2016, ch. 512, art. 1, § 26; P.L. 2020, ch. 79, art. 1, § 24.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

39-31-5. Regional energy procurement.

  1. Consistent with the purposes of this chapter, the public utility company that provides electric distribution as defined in § 39-1-2(a)(12) , as well as natural gas as defined in § 39-1-2(a)(17) , in consultation with the office of energy resources and the division of public utilities and carriers is authorized to voluntarily participate in multistate or regional efforts to:
    1. Procure domestic or international large- or small-scale hydroelectric power and eligible renewable energy resources, including wind, as defined by § 39-26-5(a) , on behalf of electric ratepayers; provided, however, that large-scale hydroelectric power shall not be eligible under the renewable energy standard established by chapter 26 of this title;
    2. Procure incremental, natural-gas-pipeline infrastructure and capacity into New England to help strengthen energy system reliability and facilitate the economic interests of the state and its ratepayers;
    3. Support the development and filing of necessary tariffs and other appropriate cost-recovery mechanisms, as proposed by the office of energy resources or the division of public utilities and carriers, that allocate the costs of new, electric-transmission and natural-gas-pipeline infrastructure and capacity projects selected pursuant to the provisions of this chapter to ratepayers, such that costs are shared among participating states in an equitable manner; and
    4. To the extent that the public utility company that provides electric distribution as defined in § 39-1-2(a)(12) , as well as natural gas as defined in § 39-1-2(a)(17) , pursues the objectives identified above, the public utility company shall utilize all appropriate, competitive processes, and maintain compliance with applicable federal and state siting laws.
  2. Any procurement authorized under this section shall be commercially reasonable.

History of Section. P.L. 2014, ch. 424, § 1; P.L. 2014, ch. 477, § 1; P.L. 2020, ch. 79, art. 1, § 24.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

39-31-6. Utility filings with the public utilities commission.

  1. Pursuant to the procurement activities in § 39-31-5 , the public utility company that provides electric distribution as defined in § 39-1-2(a)(12) , as well the public utilities that distribute natural gas as provided by § 39-1-2(a)(20) , are authorized to voluntarily file proposals with the public utilities commission for approval to implement these policies and achieve the purposes of this chapter. The company’s proposals may include, but are not limited to the, following authorizations:
    1. Subject to review and approval of the commission, to enter into long-term contracts through appropriate competitive processes for large- or small-scale hydroelectric power and/or renewable energy resources that are eligible under the renewable energy standard established by chapter 26 of this title; provided, however, that large-scale hydroelectric power shall not be eligible under the renewable energy standard established by chapter 26 of this title, and provided that:
      1. The electric distribution company may, subject to review and approval of the commission, select a reasonable, open, and competitive method of soliciting proposals from renewable energy developers, including domestic or international large- or small-scale hydroelectric power, that may include public solicitations and individual negotiations.
      2. The solicitation process shall permit a reasonable amount of negotiating discretion for the parties to engage in arms-length negotiations over final contract terms.
      3. Each long-term contract entered into pursuant to this section shall contain a condition that it shall not be effective without commission review and approval.
      4. The electric distribution company shall file the contract(s), along with a justification for its decision, within a reasonable time after it has executed the contract following a solicitation or negotiation.
      5. Subject to review and approval of the public utilities commission, to enter into long-term contracts for natural-gas-pipeline infrastructure and capacity that are commercially reasonable and advance the purposes of this chapter at levels beyond those commitments necessary to serve local gas distribution customers, and may do so either directly, or in coordination with, other New England states and instrumentalities; utilities; generators; or other appropriate contracting parties.
      6. The commission shall accept public comment on any contracts filed by the distribution utility, as authorized under this section, for a period no less than thirty (30) days.
        1. During this public comment period, the contracts shall be reviewed by the following state agencies, which shall provide advisory opinions to the public utilities commission on the topics specified, and the public utilities commission shall give due consideration to the advisory opinions filed:
          1. The department of environmental management (DEM) shall provide an advisory opinion on the expected greenhouse gas emissions and statewide environmental impacts resulting from the proposed contract(s).
          2. The commerce corporation shall provide an advisory opinion on the expected statewide economic impacts resulting from the proposed contract(s).
          3. The office of energy resources shall provide an advisory opinion on the expected energy security, reliability, environmental, and economic impacts resulting from the contract(s).
        2. The commission shall notify the aforementioned agencies upon the filing of any contract filed by the distribution utility pursuant to this chapter, and notify them of any related hearings and/or proceedings.
        3. Advisory opinions issued by agencies designated under subsection (a)(1)(vi)(A) of this section shall not be considered as final decisions of the agencies making the opinions, and shall not be subject to judicial review under § 42-35-15 , or any other provision of the general laws.
      7. The commission may approve the contract(s) if it determines that:
        1. The contract is commercially reasonable;
        2. The requirements for the solicitation have been met;
        3. The contract is consistent with the region’s greenhouse gas reduction targets; and
        4. The contract is consistent with the purposes of this chapter.
      8. Participate in a multistate or regional sharing of costs through the Federal Energy Regulatory Commission-approved tariffs for the costs of electric transmission and natural-gas-pipeline infrastructure projects pursued under this chapter.
  2. The commission shall hold evidentiary hearings and public hearings to review any contract filing that may be made pursuant to this section and issue a written order approving or rejecting the contract within one hundred twenty (120) days of the filing; in rejecting a contract, the commission may advise the parties of the reason for the contract being rejected and provide an option for the parties to attempt to address the reasons for rejection in a revised contract within a specified period not to exceed ninety (90) days.

History of Section. P.L. 2014, ch. 424, § 1; P.L. 2014, ch. 477, § 1.

39-31-7. Duties of the commission.

  1. The commission may approve any proposals made by the electric and gas distribution company that are commercially reasonable and advance the purposes of this chapter. The commission’s authority shall include, without limitation, the authority to:
    1. Approve long-term contracts entered into pursuant to the goals and provisions of this chapter for large- or small-scale hydroelectric power and renewable energy resources that are eligible under the renewable energy standard established by chapter 26 of this title; provided, however, that large-scale hydroelectric power shall not be eligible under the renewable energy standard established by chapter 26 of this title;
    2. Approve long-term contracts for natural-gas-pipeline infrastructure and capacity consistent with the purposes of this chapter;
    3. Approve rate-recovery mechanisms proposed by the electric and gas distribution companies relating to costs incurred under this chapter by the electric and gas distribution company that facilitate the multistate or regional sharing of costs necessary to implement electric transmission and natural-gas-pipeline infrastructure projects pursued under this chapter, including any costs incurred through the Federal Energy Regulatory Commission approved tariffs related to such multistate or regional energy infrastructure procurements;
    4. Address any proposed changes to standard-offer procurements, standard-offer pricing, and retail-choice rules;
    5. Provide for the recovery of reasonable costs from all distribution customers incurred by the electric and gas distribution company in furtherance of the purposes of this chapter that may include, but are not limited to, costs incurred under any contracts approved by the commission under this section and costs associated with the management of incremental capacity resulting from interstate gas-pipeline-expansion projects pursued pursuant to this chapter and costs associated with investments in local gas-distribution-network assets necessary to implement such interstate gas-pipeline-expansion projects;
    6. Approve cost allocation proposals filed by the gas distribution company and/or the electric distribution company that appropriately allocate natural gas infrastructure and capacity costs incurred under § 39-31-6 between electric and gas distribution customers of the electric and gas distribution company in a manner proportional to the energy benefits accrued by Rhode Island’s gas and electric customers from making such investments. In making its determination, the commission shall consider projected reductions in regional, wholesale electric prices as a benefit that accrues to electric ratepayers. The allocation of costs shall include all distribution customers, regardless from whom they are purchasing their commodity service; and
    7. Approve any other proposed regulatory or ratemaking changes that reasonably advance the goals set forth herein.
  2. The grant of authorizations under this chapter shall not be construed as creating a mandate or obligation on the part of the electric and gas distribution company to enter into any contracts or file any proposals pursuant to this chapter.
  3. The public utilities commission shall docket any proposals made by the office of energy resources and division of public utilities and carriers pursuant to § 39-31-4 . Docket materials shall be posted and maintained on the commission’s website. The commission shall conduct proceedings, as provided below, solely for the purpose of determining whether the proposed infrastructure projects, if implemented, are in the public interest and no commitments shall be valid or authorized without such finding being made by the commission. The validity and approval of any commitments made by the electric or gas distribution company in furtherance of the purposes of this chapter shall be separate and subject to § 39-31-5 . The docket opened pursuant to this subsection shall proceed as follows:
    1. The following state agencies shall provide advisory opinions to the commission on the topics specified below within sixty (60) days from the docketing date:
      1. The department of environmental management (DEM) shall provide an advisory opinion on the expected greenhouse gas emissions and statewide environmental impacts resulting from the proposed project(s).
      2. The commerce corporation shall provide an advisory opinion on the expected statewide economic impacts resulting from the proposed project(s).
      3. Will benefit Rhode Island ratepayers by offering the potential for reduced energy price volatility and reduction of energy supply costs in the context of an integrated regional energy system;
      4. Will not cause unacceptable harm to the environment and are consistent with the region’s greenhouse gas reduction goals; and
      5. Will enhance the economic fabric of the state.
    2. The commission shall notify the aforementioned agencies upon the filing of any proposal made under this section, and notify them of any related hearings and/or proceedings.
    3. Advisory opinions issued by agencies designated under subsection (c)(1) of this section shall not be considered as final decisions of the agencies making the opinions and shall not be subject to judicial review under § 42-35-15 or any other provision of the general laws.
    4. Upon completion of the sixty-day (60) advisory-opinion period, the commission shall provide for a thirty-day (30) public comment period on any energy infrastructure project(s) selected pursuant to this chapter and hold evidentiary hearings. In addition to evidentiary hearings, the commission shall also hold at least one public hearing to accept public comment on the proposal(s) prior to an open meeting held pursuant to this section.
    5. The commission shall hold an open meeting no later than one hundred twenty (120) days from the date of filing by the office of energy resources and division of public utilities and carriers and shall certify that the proposed project(s) are in the public interest if, in the commission’s determination, and in consideration of filed advisory opinions and the opinion of the electric or gas distribution utility, the proposed infrastructure project(s): (i) Are consistent with the findings and purposes of this chapter; (ii) Will benefit Rhode Island by improving local and regional energy system reliability and security;
    6. The commission shall issue a written determination of its findings within ten (10) business days of its open-meeting decision and provide copies of that determination, along with copies of all advisory opinions, public comment, and any other materials deemed relevant to the commission determination, to the governor, the president of the senate, the speaker of the house, the commissioner of the office of energy resources, and the administrator of the division of public utilities and carriers.
  4. A determination issued by the commission shall constitute the sole, final, binding, and determinative regulatory decision within the state for the purpose of authorizing the state to support a proposed, regional energy-infrastructure project(s) that is funded through the Federal Energy Regulatory Commission approved tariffs on a regional and/or multistate basis pursuant to this chapter. Appeals shall be governed by § 39-5-1 .
  5. Upon issuance of a written determination by the commission finding that the proposed project(s) is in the public interest, the office of energy resources and division of public utilities and carriers shall, on behalf of the state, be authorized to support any regional and/or multistate process necessary to implement the project(s), including, without limitation, supporting any necessary and related Federal Energy Regulatory Commission filings; provided, however, that any commitments made by the electric or gas distribution company to implement the proposals remain voluntary and subject to § 39-31-5 .
  6. Nothing in this section shall be construed to preclude the electric or gas distribution company from making a filing under § 39-31-6 , simultaneous with a filing under this section by the office of energy resources and the division of public utilities and carriers, in which case the filings made under §§ 39-31-6 and 39-31-7 shall be consolidated.

History of Section. P.L. 2014, ch. 424, § 1; P.L. 2014, ch. 477, § 1; P.L. 2020, ch. 79, art. 1, § 25.

Effective Dates.

P.L. 2020, ch. 79, art. 2, § 29, provides that the amendment to this section by that act takes effect on December 31, 2020.

39-31-8. Verification of energy generation and attributes of imported electricity.

Energy generation and the attributes of electricity imported into New England shall be tracked and verified through the expansion of the New England Pool — Generation Information System or the development of another appropriate tracking and verification mechanism.

History of Section. P.L. 2014, ch. 424, § 1; P.L. 2014, ch. 477, § 1.

39-31-9. Siting of regional energy infrastructure.

All regional or multistate energy infrastructure projects authorized under this chapter shall respect and maintain compliance with the individual project host state’s siting authority and requirements. Any projects selected pursuant to this chapter must maintain compliance with Rhode Island energy facility siting act requirements, where applicable, as authorized under chapter 98 of title 42.

History of Section. P.L. 2014, ch. 424, § 1; P.L. 2014, ch. 477, § 1.

Chapter 32 Rhode Island Small Cell Siting Act

39-32-1. Definitions.

As used in this chapter:

  1. “Authority” means a city, town, or any other state or municipal government subdivision, agency, or entity that is authorized by law to regulate or control the use of the public rights-of-way or the construction or installation of poles or wireless facilities or that owns or controls property suitable for collocating small wireless facilities. The term does not include the state courts.
  2. “Authority pole” means a pole owned or controlled by an authority and includes metal, composite, concrete, or wood poles, as well as decorative poles.
  3. “Authority structure” means a building, water tower, or other structure owned or controlled by an authority, but not an authority pole.
  4. “Collocate” means to install, mount, maintain, modify, operate, or replace wireless facilities on a pole, including an authority pole, or on a building, water tower, or other structure, including an authority structure. “Collocation” has a corresponding meaning.
  5. “Communications service provider” means a cable operator, as defined in 47 U.S.C. § 522(5); a provider of information service, as defined in 47 U.S.C. § 153(24); a telecommunications carrier, as defined in 47 U.S.C. § 153(51); or a wireless service provider.
  6. “Person” means an individual, corporation, limited-liability company, partnership, association, trust, or other entity or organization, including an authority.
  7. “Pole” means a utility pole, light pole, light standard, or similar structure that is used, in whole or in part, for telephone service, wireless service, cable television service, information service, electric service, lighting, traffic control, signage, or similar function.
  8. “Small wireless facility” means a wireless facility with an antenna of no more than six cubic feet (6 cu. ft.) in volume and associated equipment with a cumulative volume no larger than twenty-eight cubic feet (28 cu. ft.). The following types of associated equipment may be located outside the primary enclosure and are not included in the calculation of equipment volume: electric meter, concealment, telecommunications demarcation box, ground-based enclosures, backup power system, grounding equipment, power transfer switch, cut-off switch, and cable and conduit runs for the connection of power and other services. Equipment that is concealed from public view within or behind an existing structure or concealment is not included in the volume calculations.
  9. “Wireless facilities” means equipment at a fixed location that enables wireless communications between user equipment and a communications network, including, but not limited to:
    1. Equipment associated with wireless services, such as private, broadcast, and public safety services, as well as unlicensed wireless services and fixed wireless services, such as microwave backhaul; and
    2. Radio transceivers, antennas, coaxial or fiber-optic cable, regular and backup power supplies, and comparable equipment, regardless of technological configuration. The term “wireless facilities” includes small wireless facilities but does not include the structure or improvements on, under, or within which the equipment is collocated; wireline backhaul facilities; coaxial or fiber-optic cable that is between wireless support structures or poles; or coaxial or fiber-optic cable that is otherwise not immediately adjacent to, or directly associated with, an antenna.
  10. “Wireless service” means any services using licensed or unlicensed wireless spectrum, whether at a fixed location or mobile, provided using wireless facilities.
  11. “Wireless service provider” means a person who provides wireless service, as well as a person who builds, installs, or maintains wireless communications transmission equipment, wireless facilities, or wireless support structures.

History of Section. P.L. 2017, ch. 309, § 2; P.L. 2017, ch. 331, § 2.

Legislative Findings.

P.L. 2017, ch. 309, § 1 and P.L. 2017, ch. 331, § 1 provide: “Because of the integral role that technology plays in economic development and the vitality of the State of Rhode Island and Providence Plantations and in the lives of its citizens, the general assembly has determined that a law addressing the deployment of wireless technology is of vital interest to the state. Rhode Island is one of the foremost states with broadband coverage and capability and must continue to lead in the advancement of new technology. Small wireless facilities are critical to delivering wireless access to advanced technology, broadband and 911 services to homes, businesses, and schools in the state. To ensure that the state and those who live and work here continue to benefit from these advanced services as soon as possible and to ensure that providers of wireless services have a fair and predictable process for the deployment of small wireless facilities, the general assembly enacts this ‘Rhode Island Small Cell Siting Act’, which specifies how local authorities may regulate the collocation of small wireless facilities and small wireless facility networks.”

39-32-2. Regulation of small wireless facilities.

  1. A wireless service provider authorized to do business in this state or a contractor acting on its behalf may collocate small wireless facilities within, along, across, upon, and under any public right-of-way in this state, including state highways and freeways, and may construct conduit, cables, and facilities between such small wireless facility and other equipment or services located on or adjacent to the supporting pole or other structure, subject to the provisions of this chapter.
  2. Except as provided in this chapter, an authority shall not prohibit, regulate, or charge for the collocation of small wireless facilities.
  3. Small wireless facilities shall be classified as permitted uses in all zoning districts and shall not be subject to zoning review or approval.
  4. Nothing in this chapter shall be construed to authorize a person to collocate a small wireless facility on a privately owned pole, structure, or other private property without the consent of the property owner.
  5. All agreements between authorities and wireless service providers that are in effect on the effective date of this chapter [September 27, 2017] and that relate to the collocation of small wireless facilities in the public right-of-way or on authority poles or structures shall remain in effect, subject to any termination provisions in such agreements. Notwithstanding the foregoing, at the election of a wireless service provider, the rates, fees, terms, and conditions established pursuant to this chapter shall apply to small wireless facilities that are the subject of an application submitted after the effective date of this chapter.

History of Section. P.L. 2017, ch. 309, § 2; P.L. 2017, ch. 331, § 2.

39-32-3. Collocation of small wireless facilities on authority poles and authority structures.

An authority may require a person to obtain a building, electrical, or a public right-of-way use or work permit to collocate small wireless facilities on authority poles or authority structures, provided such permits are of general applicability and do not apply exclusively to wireless facilities. An authority may not require a permit, other than a public right-of-way work permit, for routine maintenance on a previously approved small wireless facility or to replace a small wireless facility with a facility of substantially similar or smaller size and weight. An authority shall accept an application for, process, and issue a permit allowed under this chapter as follows:

  1. An authority shall receive applications for, and process and issue permits for, collocating small wireless facilities on a nondiscriminatory basis and in substantially the same manner as the permitting of other applicants within the jurisdiction of the authority. An applicant for a collocation permit shall not be required to provide more information to obtain a permit than communications service providers that are not wireless providers. If consistent with the preceding sentence, an authority may require an application to include information sufficient to determine whether the collocation meets applicable building or electrical codes or, if applicable, standards for construction in the right-of-way, provided such codes and standards are of general applicability.
  2. An authority may charge a fee to process an application to collocate a small wireless facility. The fee shall be no greater than the reasonable, direct and actual costs incurred by the authority to process the application, excluding any fees for review of an application charged by third parties on a contingency basis or a result-based arrangement, and further excluding any costs already recovered by existing fees, rates, or taxes paid by a wireless provider. The application processing fee shall be no greater than the application processing fee, if any, charged by the authority to persons seeking to place a pole in the public way. Except as provided in § 39-32-5 , an applicant shall not be required to pay any additional fees or charges, or perform or provide any services not directly related to the collocation, in order to collocate small wireless facilities.
  3. At its discretion, an applicant shall be allowed to file a consolidated application and receive a single permit to collocate small wireless facilities at multiple locations within the jurisdiction of the authority.
  4. An authority may not institute a moratorium on filing, receiving, or processing applications or issuing permits or approvals for the collocation of small wireless facilities.
  5. All permits regarding the collocation of small wireless facilities shall be of unlimited duration but initial construction shall be completed within one hundred eighty (180) days after the permit issuance date, unless the authority and wireless provider agree to extend this period or a delay is caused by a lack of commercial power at the site.
  6. Notwithstanding the provisions of § 39-32-2(c) , a permit for a collocation within a historic district as defined in § 45-24.1-1.1 shall be subject to historic district commission review and approval, in accordance with standards to be adopted by regulation or rule. The standards may include that a collocation meet reasonable design, context, color, and stealth and concealment requirements and make reasonable accommodation for location within the district. The historic district commission may waive one or more standards upon a showing that the standard(s) are not reasonably compatible with the particular location of a small wireless facility, or that the standard(s) impose an excessive expense. The waiver shall be granted or denied within forty-five (45) days after the date of the request for waiver.
  7. A permit may require a collocation on an authority pole that is a decorative pole to meet objective design standards, including that a collocation meet reasonable location, context, color, and stealth and concealment requirements. Such standards shall be adopted by ordinance, regulation, or rule. An authority may waive one or more standards upon a showing that the standard(s) are not reasonably compatible with the particular location of a small wireless facility, or that the standard(s) impose an excessive expense. The waiver shall be granted or denied within forty-five (45) days after the date of the request.

History of Section. P.L. 2017, ch. 309, § 2; P.L. 2017, ch. 331, § 2.

39-32-4. Action on permit applications.

  1. An authority shall approve an application for a permit under this chapter unless the collocation does not meet applicable building or electrical codes or, if applicable, standards for construction in the right-of-way, provided such codes and standards are of general applicability. The authority must document the basis for any denial, including the specific code provisions or standards on which the denial was based, and send the documentation to the applicant on or before the day the authority denies an application. The applicant may cure the deficiencies identified by the authority and resubmit the application within thirty (30) days of the denial without paying an additional processing fee. The authority shall approve or deny the revised application within thirty (30) days. Any subsequent denial shall be limited to the deficiencies cited in the original denial. Where one or more locations addressed in a consolidated application do not meet the criteria of this section, the authority shall allow the application as to all other locations.
  2. An application shall be deemed approved if the authority fails to approve or deny the application within sixty (60) days of submission. If the authority notifies the applicant within fourteen (14) days after the initial submission that the application is incomplete and reasonably identifies at that time the information that is lacking, the time period stated above shall be tolled during the time it takes the applicant to respond. No other request for additional information shall toll such time periods.
  3. A person whose application or revised application is denied by an authority may appeal to the superior court within thirty (30) days of the denial. The superior court shall have jurisdiction to determine all disputes arising under this chapter.

History of Section. P.L. 2017, ch. 309, § 2; P.L. 2017, ch. 331, § 2.

39-32-5. Additional terms for collocation on authority poles and structures.

  1. Within six (6) months of receiving its first request to collocate small wireless facilities on authority poles located within the public rights-of-way, but in no event later than April 1, 2018, an authority shall establish, by ordinance, regulation, or rule, nondiscriminatory, competitively neutral, and commercially reasonable rates, terms, and conditions for such collocation that are consistent with the provisions of this chapter. Aside from the application processing fee allowed under § 39-32-3 , an authority shall not charge on an annual recurring basis more for such a collocation than one hundred and fifty dollars ($150) or the rate produced by applying the formula adopted by the Federal Communications Commission for telecommunications attachments under 47 U.S.C. § 224(e). The fee limitation shall not apply to authority structures.
  2. An authority shall authorize the collocation of small wireless facilities on authority poles not located within the public rights-of-way and on authority structures to the same extent the authority permits access to the poles and structures for other commercial projects or uses, and may authorize the collocation if the authority has not previously permitted access. The collocation shall be subject to reasonable and nondiscriminatory rates, terms, and conditions as provided by ordinance or in one or more agreements between the wireless provider and the authority. An authority may not charge on an annual recurring basis more for such a collocation than the amount charged for similar commercial projects or uses to occupy or use the same amount of space on similarly situated property.

History of Section. P.L. 2017, ch. 309, § 2; P.L. 2017, ch. 331, § 2.

39-32-6. Collocation of small wireless facilities on private poles and structures.

  1. An authority may not prohibit, regulate, or charge for the collocation of small wireless facilities on poles or structures other than authority poles and authority structures.
  2. A wireless service provider may install poles in the public rights-of-way in order to collocate small wireless facilities, subject to request and authority approval. An authority shall receive, process, and approve such requests on a nondiscriminatory basis and in substantially the same manner and on substantially the same terms and conditions as the authority applies to similar requests by other persons seeking to place poles in the public ways.

History of Section. P.L. 2017, ch. 309, § 2; P.L. 2017, ch. 331, § 2.