News Summary
Rhode Island Energy has proposed a new winter supply rate of 14.770 cents per kWh for Last Resort Service customers. This represents a 16% increase from the summer rate but a 9% decrease from last winter’s rate. Average bills are expected to rise by $22, with Governor McKee advocating for credits to alleviate costs. Despite this lower winter rate, ongoing concerns about utility affordability and profitability persist as discussions about additional relief measures continue.
Providence, Rhode Island – Rhode Island Energy has proposed a new winter supply rate of 14.770 cents per kWh for customers relying on Last Resort Service, signaling an increase in electricity costs for the upcoming cold months. If the proposal is approved, this rate will reflect a 16% increase compared to the summer rate but marks a 9% decrease from the previous winter’s rate of 16.387 cents per kWh.
This proposed winter electric rate would be the lowest recorded in Rhode Island since the 2021-2022 winter season. Despite this relatively lower winter rate, homeowners can expect their average bills to increase by roughly $22. Rhode Island Energy plans to offer credits of approximately $24.50 for the months of January, February, and March in both 2026 and 2027, intended to help reduce the financial burden on ratepayers.
Governor Dan McKee is pressing the Public Utilities Commission (PUC) to approve these proposed credits and is advocating for an additional $25 million in relief for ratepayers through adjustments in other charges. The PUC, responsible for reviewing utility rates and policies, is currently assessing various proposals aimed at providing further relief for consumers.
A recent PUC hearing drew a small crowd of around a dozen attendees, a stark contrast to previous meetings that had attracted larger groups protesting against rising utility costs. Community members, including lawmakers, have expressed their concerns regarding Rhode Island Energy’s focus on profit over the affordability of essential utility services. In response, a petition with 206 signatures was submitted asking for reconsideration of the proposed rates.
Although the supply rate proposed for this winter is lower than last season, the average bill may still rise by 16.05% due to changes in renewable energy program charges. In contrast, proposed updates to gas billing could lead to an average annual savings of 10.3%, which equates to approximately $190.44 savings per year for typical residential customers starting November 1.
Additionally, Rhode Island Energy has indicated that they will distribute an estimated $154 million in combined electric and gas discounts over a projected 40-year term, resulting from adjustments to utility acquisition strategies. However, the company recently reported a substantial profit of $183 million for the three-month period ending June 30, raising further concerns over their dedication to providing affordable service.
The PUC has the authority to adjust service charges and consider capital investments, both of which could significantly impact customer bills in the future. Advocates are pushing for comprehensive policy measures, such as the Percentage of Income Payment Plan, which is designed to cap utility costs for low-income residents—a program that is currently implemented in several other states.
While discussions evolve, the deadline for utility regulators to finalize the proposed winter rates and repayment flexibility measures has not yet been specified. Rhode Island Energy is also requesting to suspend pandemic-era payment flexibility plans, which have contributed to a significant spike in unpaid utility debts. A concerning outcome of this suspension could result in an estimated 5,000 residents facing utility shutoffs, prompting debates around public safety and necessary safeguards for vulnerable populations.
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Additional Resources
- Turn to 10
- Wikipedia: Rhode Island
- Rhode Island Current
- Google Search: Rhode Island energy rates
- Providence Journal
- Encyclopedia Britannica: Utility
- PBN
- Google News: Rhode Island utilities
Author: STAFF HERE PROVIDENCE WRITER
PROVIDENCE STAFF WRITER The PROVIDENCE STAFF WRITER represents the experienced team at HEREProvidence.com, your go-to source for actionable local news and information in Providence, Providence County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as WaterFire, Rhode Island International Film Festival, and Rhode Island Comic Con. Our coverage extends to key organizations like the Greater Providence Chamber of Commerce and Providence Warwick Convention & Visitors Bureau, plus leading businesses in finance and manufacturing that power the local economy such as Citizens Financial Group and Textron. As part of the broader HERE network, we provide comprehensive, credible insights into Rhode Island's dynamic landscape.
