Rhode Island Energy has submitted proposed summer electric rates to state regulators. (Photo by Alexander Castro/Rhode Island Current)
Rhode Island Energy customers can still expect to see the usual, seasonal savings on their summer electric bills this year. But they will pay a bit more than last year.
The utility operator submitted its proposed six-month summer electric rates to the Rhode Island Public Utilities Commission on Jan. 16. If approved, the rate changes would take effect April 1.
The proposed 10.18 cents per kilowatt-hour are 0.5% lower than the rates charged in summer 2024. Additionally, customers will have to pay an extra 25 cents per month compared with summer 2024 to cover rising costs associated with state renewable energy requirements.
State law requires utility carriers supply a certain percentage of their energy from renewable sources or else purchase credits to offset the required amount. A 2022 state law requires that 100% of state electricity needs be offset by credits or direct renewable sources by 2033, with incremental increases each year before the 2033 deadline.
Including related charges and fees, the average residential customer using 500 kilowatt-hours of electricity per month would pay $137.51 starting April 1.
That represents a $35.25 monthly savings — 19% — compared with current bills under the existing, winter rates.
Industrial and commercial customers would also see bills decrease, though the amount depends on the type of operation, and usage.
In recent years, rising electricity rates, particularly during winter months, have prompted public outcry, with scores of residents, community advocates and lawmakers protesting the financial consequences on low-income residents and families. Yet state law dictates that regulators must approve proposed rates as long as utility companies can prove the prices are set by market supply, with no additional company profit.
“We continue to do everything we can to keep energy costs as low as possible for our customers, and I’m pleased the market prices of electricity will once again come down in the summer so we can pass those savings on to customers,” Rhode Island Energy President Greg Cornett said in a statement. “Our number one priority is providing our customers with reliable, affordable and sustainable energy and we encourage all customers to explore the variety of ways we can help them save energy and money – including our payment plans, assistance programs and energy efficiency solutions.”
The PUC will hold a public hearing on Rhode Island Energy’s proposed electric rates before issuing its decision. A hearing date has not been scheduled as of Thursday.
Customers in seven municipalities — Barrington, Central Falls, Narragansett, Newport, Portsmouth, Providence, and South Kingstown — can opt out of Rhode Island Energy electric prices and participate instead in a community aggregation plan that leverages bulk buying power to secure lower-priced electricity for its residents. Proposed summer electric rates through the community aggregation plan, which would take effect May 1, were not immediately available.
About 25% of the 780,000 Rhode Island Energy customers already opt out of the company’s default electric prices.
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