News Summary
Rhode Island Energy has signed an agreement with Algonquin Gas Transmission to secure additional natural gas pipeline capacity, enhancing supply reliability and affordability for customers. Amid rising utility rates, including a recent 16% increase in electric rates, efforts are underway to alleviate financial burdens on residents. Proposals for bill credits and community aggregation plans are being considered to support low-income customers and address increasing customer debt, while discussions continue about the long-term reliance on natural gas.
Rhode Island has secured additional natural gas pipeline capacity through a newly signed agreement between Rhode Island Energy and Algonquin Gas Transmission LLC. The deal aims to enhance the reliability and affordability of natural gas supplies for customers, as announced on Wednesday. This comes at a time when Rhode Island Energy is grappling with rising utility rates, which have become a significant concern for residents.
The Rhode Island Public Utilities Commission recently approved a 16% increase in winter electric rates for Rhode Island Energy customers, effective October 1. This rate hike will lead to an average monthly bill increase of $22.28 for customers over the next six months. The new electric supply rate has been set at 14.77 cents per kilowatt-hour, which is 16.05% higher than summer prices but nearly 10% lower than the previous winter’s rates.
In response to the escalating rates, a petition with 206 signatures was submitted to utility regulators urging them to reject the proposed hikes due to the financial difficulties faced by customers against the backdrop of the utility’s profit margins. PPL Corp, the parent company of Rhode Island Energy, reported a profit of $183 million for the quarter ending June 30, which included $8 million attributed to its Rhode Island operations.
While state law prohibits Rhode Island Energy from raising rates based on utility profits, it does allow for cost recovery if procurement plans are adhered to. Currently, proposals are under review for providing up to $180 million in credits on winter gas and electric bills to help alleviate the financial burden on customers. This includes a pitch from Governor Dan McKee for $154 million in bill credits to be rolled out during the highest billing periods of January and February in 2026 and 2027.
To support low-income customers, the Rhode Island Office of Energy Resources has proposed allocating $5 million for credits from October to December, which is expected to provide approximately $45 for qualified customers. Additionally, the commission has initiated a request for public comment to discuss options for reducing seasonal bill spikes, indicating growing concerns over increasing utility costs.
There are also discussions about compressing service charges that fund energy efficiency programs to allow for lower costs during peak heating months. Furthermore, Rhode Island Energy customers currently have the opportunity to engage in community aggregation plans that offer lower-priced electricity rates.
However, customer debt has significantly increased, with unpaid bills reportedly doubling to $254.9 million as of May 2025. A proposal to end flexible COVID-era debt repayment options for customers will transition to new permanent plans starting January 1, 2026. Advocacy groups have expressed concerns regarding the long-term reliability of dependence on natural gas, particularly amidst seasonal price increases and volatility.
In conclusion, while Rhode Island Energy works to secure additional natural gas capacity and address rising utility costs, the financial strain on customers continues to increase, leading to various proposals and discussions aimed at providing relief. The situation remains dynamic as stakeholders consider the best path forward amid growing economic pressures.
Deeper Dive: News & Info About This Topic
- PBN: Rhode Island Energy Signs New Deal for Major Gas Pipeline Expansion
- Rhode Island Current: R.I. Utility Regulators Approve 16% Hike
- Providence Journal: R.I. Electric Rates Are Going Up This Winter
- Canary Media: Funding Cuts in Rhode Island’s Cost of Living
- Turn to 10: Rhode Island Energy to Discuss Winter Supply Prices
- Wikipedia: Rhode Island
- Google Search: Rhode Island Energy
- Google Scholar: Rhode Island Electricity Rates
- Encyclopedia Britannica: Rhode Island
- Google News: Rhode Island Energy News
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