Rhode Island Proposes 9% Reduction in Winter Electric Rates

News Summary

Rhode Island Energy has proposed a 9% decrease in its winter electric supply price, aiming to alleviate financial burden for customers facing rising energy costs. The new rate of 14.77 cents per kilowatt-hour will take effect from October 1, bringing relief despite a forecasted increase in average residential bills. Additionally, credits for low-income residents and a new assistance initiative are planned, subject to regulatory approval. The company emphasizes transparency in pricing and potential alternatives for customers looking to save on electricity.

Rhode Island is set to see a reduction in winter electric rates, as Rhode Island Energy has proposed a 9% decrease in its winter electric supply price. This proposal, announced on Monday, aims to offer some financial relief to customers facing rising energy costs.

The proposed winter electric supply price is approximately 14.77 cents per kilowatt-hour, applicable from October 1 through March 31. This new price point marks a significant reduction from last winter’s rate of 16.387 cents per kilowatt-hour, according to the energy provider.

Despite the reduction in supply costs, it is important for customers to note that the average residential bill will increase. Specifically, customers consuming an average of 500 kilowatt-hours monthly can anticipate a rise in their electric bills, from $138.80 to $163.29, equating to $24.49 more each month.

Greg Cornett, the President of Rhode Island Energy, has emphasized that this proposed rate is the lowest seen in four years. Furthermore, the pricing structure ensures that customers will only pay what Rhode Island Energy pays for their electricity supply, without any markup or profit margin.

In addition to the proposed rate reduction, Rhode Island Energy, along with the Advocacy Section, has put forward a plan to credit electric customers between $20 and $30 per month and gas customers between $40 and $50 per month during the months of January, February, and March in 2026 and 2027. This initiative stems from a commitment made by Rhode Island Energy’s parent company three years ago and is pending regulatory review. If approved, these credits will appear as a separate line item on customer bills.

In a move to support low-income residents, the office of Governor Dan McKee has directed the Rhode Island Office of Energy Resources to distribute $5 million from the Regional Greenhouse Gas Initiative funds for bill credits specifically targeting low-income customers in the months of October, November, and December. Customers who are on the low-income discount rate will benefit significantly from these allocations.

Rhode Island Energy is also in the process of developing an employee-funded assistance initiative called “Operation Help.” This program is designed to provide additional support for vulnerable customers struggling to pay their winter bills and is expected to be finalized later this year. Meanwhile, the existing Good Neighbor Energy Fund continues its operation, providing heating assistance across the state.

Despite the proposed lower rates, factors such as the global increase in natural gas prices due to geopolitical tensions, particularly from the ongoing war in Ukraine, could influence future customer prices. These external factors are critical as they can affect the operational costs of energy suppliers.

Before the new proposed rates can be implemented, they must receive regulatory approval. Additionally, residential customers in seven municipalities have the option to participate in community aggregation plans, which may offer even lower electricity rates. Notably, approximately 25% of Rhode Island Energy’s 780,000 customers have opted out of the default electric prices offered by the company, reflecting a growing trend towards exploring alternative energy options.

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