Rhode Island Energy has proposed a rate increase for its residential winter electricity supply rate from 14.77 cents to 17.03 cents per kilowatt-hour beginning Oct. 1, pending approval by the Rhode Island Public Utilities Commission. The proposed change represents a 15% increase, with the average residential customer expected to pay about $12 more per month during the winter.
The increase comes as Rhode Island already has some of the highest residential electricity prices in the country. According to federal energy data, the Ocean State consistently ranks among the five most expensive states for residential electricity, with rates well above the national average.
Rhode Island Energy says the proposed increase reflects higher wholesale electricity costs, new ISO New England grid reliability requirements, rising natural gas prices, and continued uncertainty in global energy markets. Because the company purchases electricity through regional markets, those supply costs are passed directly to customers.
To help offset the higher bills, Governor Dan McKee has declared an energy affordability emergency and proposed using $28 million in emergency relief. If approved by the Rhode Island Public Utilities Commission, every Rhode Island residential electric customer would receive an estimated $61 bill credit to help offset higher winter electricity costs.
In addition to the proposed bill credit, income-eligible households may also qualify for assistance through programs such as the Low Income Home Energy Assistance Program (LIHEAP) and other energy assistance programs available throughout the state.
Before the new rate can take effect, it must be approved by the Rhode Island Public Utilities Commission (PUC). The three-member commission is appointed by the governor and confirmed by the Rhode Island Senate. Two of the current commissioners were appointed by former Governor Gina Raimondo, while one was appointed by Governor Dan McKee.
If approved by the PUC, the new winter supply rate would take effect on October 1.
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