RI S2202

Requires the Public Utilities Commission to annually update and maintain a generic financing methodology using publicly available data to set authorized common equity ratios for each regulated utility and a single authorized rate of return on equity applicable to all utilities.

Mandates surcredits to ratepayers when a utility's actual return on equity exceeds the authorized rate, and permits surcharges to recover shortfalls when actual returns fall below authorized levels.

Places the burden of proof on regulated utilities to demonstrate by preponderance of evidence that authorized rates are insufficient to maintain financial integrity, attract capital, or provide fair returns if they wish to challenge the commission's determinations.

Requires all methodologies and calculations to be transparent, subject to public notice and comment, and prioritize ratepayer interests in final determinations.

Establishes annual reporting requirements to the governor and legislature on authorized rates, surcredits/surcharges applied, and any deviations from the standard methodology, with reports published on the commission's website.

Effective date: July 1, 2027.