Rhode Island Energy overbilled state $2M, according to audit

PROVIDENCE, R.I. — A recently released audit shows Rhode Island Energy overbilled state government accounts around $2 million. The audit was ordered earlier this year after the Rhode Island Office of Energy Resources flagged irregularities in its bills.

Rhode Island Energy, owned by PPL Corp. since its $5.3 billion acquisition of National Grid’s local operations in 2022, has faced persistent scrutiny over billing problems affecting both state agencies and private customers.

Audit Findings:

The R.I. Department of Administration led the review, which found the state was overcharged by more than $2 million during the period analyzed, far exceeding the $1 million estimate reported in July.

Auditors said the problem stemmed from Rhode Island Energy’s failure to credit the state for its net-metering accounts, which allow customers to offset energy use with renewable power they generate. The report faulted the company’s reliance on automated billing, stating it caused Rhode Island to bear “the burden of ensuring billing accuracy.”

“The mislabeling and absence of correct information from RIE’s consolidated billing file report indicates inconsistent data collection and incomplete reporting,” the audit stated.

Company Response:

Rhode Island Energy President Greg Cornett said that the state was never overcharged, but the issue was a delay in applying credits.

Cornett said the utility has worked with the state for the past year to address the problems, including making coding and system changes and assigning dedicated agents to handle state accounts. He emphasized that the state has more than 2,100 individual gas and electric accounts, ranging from government buildings to streetlights, making it a far more complex customer than most. Rhode Island Energy said similar billing issues have not surfaced with other customers on a broad scale.

What’s Next:

The audit acknowledged that Rhode Island Energy has implemented fixes but urged further improvements to ensure accuracy and consistency.

Cornett encouraged customers who believe they’re missing credits to contact the company and highlighted plans to roll out smart meters statewide by 2026. The new meters will allow customers to use a third-party app to monitor their own energy use. The app will show exactly how much energy each appliance uses, for example, how much power your washing machine or microwave consumed.

Past Issues:

Back in March, Rhode Island Energy agreed to pay $8 million to compensate ratepayers for a billing scheme that occurred under former owner National Grid, which involved delaying invoices to exceed energy-efficiency incentives. The funds went to help cover storm-related grid costs, adding to the $2.4 million National Grid refunded in 2022. Although the misconduct predates RI Energy’s ownership, the company agreed to settle.