News Summary
Rhode Island Energy has proposed a reduction in winter electric supply rates to 14.77 cents per kilowatt-hour. This 9% decrease from last winter’s rate will affect around 500,000 customers. Effective from October 1 to March 31, this rate represents the lowest winter cost in four years and part of efforts to provide relief including bill credits for customers. The initiative also includes programs for vulnerable customers, amid rising global natural gas demands influencing electricity costs.
Rhode Island Energy Proposes Lower Winter Electric Rates
Rhode Island Energy has put forward a proposal to reduce winter electric supply rates for residential customers to 14.77 cents per kilowatt-hour. This proposed rate, representing a 9% decrease from last winter’s rate of 16.4 cents per kilowatt-hour, marks the lowest winter rate in four years.
The new rate is scheduled to take effect from October 1 and will remain in place until March 31, affecting approximately 500,000 electric customers throughout Rhode Island. Notably, the proposed rate is nearly 10% lower than the rate in place last winter and 3 cents lower than the peak that was recorded during the winter of 2021-22.
Factors Behind Rate Changes
Historically, Rhode Island residents have faced high electricity rates, particularly during winter months, primarily due to a sharp increase in global demand for natural gas. This surge in demand was significantly impacted by disruptions linked to the ongoing conflict in Ukraine. In light of these challenges, Greg Cornett, the president of Rhode Island Energy, pointed to an optimistic outlook regarding decreasing supply prices and adjustments made in procurement strategies, including the decision to secure 15% of supplies on the spot market.
Customer Assistance and Credits
Alongside the proposed rate adjustments, Rhode Island Energy aims to provide additional relief for customers. The utility has announced a bill credit plan, which will benefit electric customers with monthly credits ranging from $20 to $30. For gas customers, the credits are expected to range from $40 to $50 in January, February, and March during the years 2026 and 2027. This initiative forms part of a larger commitment of $150 million from PPL Corporation, Rhode Island Energy’s parent company, made when it acquired the utility three years ago.
To expedite relief for residents, the company is focusing on paying credits promptly during peak winter months rather than stretching them across several decades. Additionally, low-income customers will benefit from a $5 million allocation from the Regional Greenhouse Gas Initiative, with further credits planned for the months of October, November, and December of this year.
Programs for Vulnerable Customers
In response to the pressing needs of vulnerable customers, Rhode Island Energy is developing an employee-funded assistance program known as “Operation Help.” This initiative aims to complement the existing Good Neighbor Energy Fund program, helping those at risk during the harsh winter months.
Current and Comparative Rates
Despite the proposed reductions, it is important to note that even the new rates will still be higher than the prevailing summer rate, which currently stands at 10.1 cents per kilowatt-hour. Additionally, it is typical for New England to experience higher energy costs during winter, driven by increased demand for heating and a reliance on a constrained pipeline system for natural gas.
Conclusion
Rhode Island Energy’s proposal for lower winter electric rates and a range of assistance programs underscores an effort to ease the financial burden on residents during colder months. As customers brace for winter, the anticipated changes may provide significant relief for many households across the state.
Deeper Dive: News & Info About This Topic
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