RI Energy proposed rate hike for 2026 could raise electric, gas bills

Rhode Island Energy is seeking approval for a new rate plan that would raise customer bills beginning next fall. The utility filed a formal rate review with the Rhode Island Public Utilities Commission, marking its first request of this kind in nearly ten years. The company says the review is needed to assess whether its current base rates still cover the rising costs of operations and system maintenance.

The filing outlines planned spending on electric and gas infrastructure upgrades, improvements to billing technology, additional staffing, and adjustments to programs for low-income customers. Under the proposal, a typical residential electric customer using 500 kilowatt-hours per month would pay about $7.78 more, an increase of 4.83 percent. Average gas customers using 845 therms annually would see their bills rise by roughly $343 a year, or about $28.63 per month.

RI Energy argues the changes reflect dramatic increases in material and construction costs. The company says underground cable that cost $2.30 per foot in 2020 now costs $4.21, and the price to replace a mile of gas pipeline has nearly tripled in the past eight years.

The filing comes shortly after RI Energy pulled back a previously approved plan that would have offered fixed bill credits to all customers in early 2026 and 2027. The company paused that program ahead of a scheduled regulatory hearing.

This is one of many problems RI Energy has been facing in the last year, with one instance of an audit showing they 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.

While 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.

RI Energy proposed rate hike for 2026 could raise electric, gas bills