The Rhode Island Public Utilities Commission approved Rhode Island Energy’s proposal for winter electric rates, which will increase average customers’ bills by 16% starting Oct. 1. (Photo by Alexander Castro/Rhode Island Current)
Twenty minutes was all it took for state regulators to cement the seasonal electricity rates that will hike Rhode Island Energy customers’ bills by an average of $22.28 per month for the next six months.
But the Rhode Island Public Utilities Commission’s swift decision Thursday does not preclude the prospect of more discounts on winter utility bills — proposals for up to $180 million in credits on winter gas and electric bills remain under review. In a nod to the rising utility costs — and frustrations of the customers who struggle to pay them — the three-member panel also kicked off a first-of-its-kind request for public comment on other ways to flatten the seasonal price spikes.
Electric supply rates typically increase every winter, reflecting the regular, seasonal fluctuations in supply and demand. But the cyclical rollercoaster has grown more dramatic in recent years because of global unrest and increasing demand for natural gas.
The 14.77 cents per kilowatt-hour price that starts Oct. 1 is 16.05% more than existing summer prices. But, it’s nearly 10% less than last winter, and below the record high during the 2022-2023 winter. Little comfort to customers struggling to afford rising bills and to their advocates, many of whom blame Rhode Island Energy for profiting in the face of residents’ financial struggles.
A 206-signature petition submitted to utility regulators earlier this month stressed the contrast between residents “pushed to the brink by unaffordable rates” and the utility supplier’s profits reaching “new highs.”
PPL Corp, the parent company for Rhode Island Energy, which reported a $183 million profit for the three-month period that ended June 30, including an $8 million quarterly profit specific to its operations in Rhode Island.
But the Pennsylvania-based corporation’s balance sheet received no boost from the prices it charges for electricity usage in Rhode Island. State law prevents the state utility supplier from boosting its bottom line through usage costs, which must directly reflect the price from third-party suppliers — a point explained in detail by Ron Gerwatowski, commission chairman, during the meeting Thursday. And, state regulators cannot reject proposed seasonal rate increases as long as there is no evidence of extra profits for the company.
“We don’t have the authority to deny the cost recovery because costs are straining affordability,” Gerwatowski said.
He later concluded, “I think the decision is really simple for us. Did they comply with the procurement plan and did they do the rates correctly?”
Rhode Island Public Utilities Commission Chairman Ronald Gerwatowski. (Photo by Laura Paton/Rhode Island Current)
Finding balance
Less simple is how to soothe the pocketbook pain that will come from the newly approved seasonal electric prices. Rhode Island Energy executives, and later Gov. Dan McKee pitched $154 million in bill credits over the next two winters. The credits, mandated to protect customers from company tax payments tied to its 2022 acquisition of the state utility operations from National Grid, were originally set to be distributed over 40 years. But proponents say concentrating the credits over the first three months of 2026 and 2027 — when customers’ utility bills are highest — would provide more meaningful relief. The discounts, which would slash electric bills $20 to $30 per month while cutting $40 to $50 from monthly gas bills, await final approval from the commission.
Separately, the Rhode Island Office of Energy Resources has proposed spending $5 million from the state’s regional gas cap-and-trade program to credit low-income customers in October through December of this year. The Regional Greenhouse Gas Initiative revenue will result in a $45 million credit for eligible customers, according to McKee’s office.
McKee has also asked the commission to come with a scheme to yield another $25 million in discounts by adjusting some of the non-supply-side charges. Even before McKee’s public plea, utility regulators indicated they were open to some tweaks to minimize the “rate shock” that occurs each winter when supply prices rise. A July 21 notice sought public feedback on ways to reduce bill costs during “peak heating months.” The solicitation suggested condensing service charges that fund the company’s investments in energy efficiency, storm recovery work and renewable energy into an eight-month period — excluding December to March — rather than the existing, 12 months. This would reduce customers’ bills during the period when prices are highest.
In Massachusetts, state utility regulators and Gov. Maura Healey opted for similar workarounds, including cutting charges on energy efficiency programs to save $500 million for ratepayers.
Environmental advocates criticized Healey’s decision as short-sighted, risking higher costs in the long-term as climate change worsens and natural gas becomes more unreliable and expensive. Rhode Island environmental and consumer protection groups were skeptical, too, of implementing similar tactics in the Ocean State.
“Rate and bill volatility are increasingly tied to the region’s overdependence upon natural gas for power generation, especially in the winter,” Tina Munter, a policy advocate for Green Energy Consumers Alliance, wrote in an Aug. 6 letter to the commission. “Overdependence upon natural gas is a fact that can and must be addressed by a long-term, steady commitment to energy efficiency, renewable energy, and demand response.”
Jennifer Wood, executive director at the Rhode Island Center for Justice, attorney representing the George Wiley Center, strongly recommended in a separate letter against letting Rhode Island Energy tack on deferral fees to make up for temporarily suspended charges.
Noting that customers rack up debt for unpaid bills in the winter, Margaret Hogan, legal services administrator for Division of Public Utilities and Carriers — the administrative arm of the state utility agency — expressed concern that shifting costs to the summer would “further exacerbate already difficult collections.”
State utility regulators have not made a decision on which, if any of these approaches to take, awaiting more data from Rhode Island Energy.
Pandemic debt repayment to end
Debt from unpaid bills is a problem for Rhode Island Energy’s balance sheets — rising more than twofold to $254.9 million as of May 2025, according to written filings submitted by the company — prompting the company to push to suspend a pandemic-era requirement that gave customers more time to pay overdue bills with lower upfront payments. In a separate, unanimous vote Thursday, utility regulators agreed Thursday to the proposal to end its March 2020 order — though not as early as Rhode Island Energy wanted.
The flexible COVID-era debt repayment option will end on Jan. 1, rather than the Dec. 1 expiration the company proposed. The vote mandates that Rhode Island Energy work with the 5,000 customers on the existing pandemic repayment plans to transition to other, permanent repayment options rather than risking shutoff.
Michael Dalo, a spokesperson for Rhode Island Energy, said in an emailed response Friday that the company was “committed to delivering safe, reliable and affordable energy.”
“We recognize that affordability is a significant concern and offer various programs and services to help customers save energy, manage their bills, and access financial assistance,” Dalo said.
Customers in seven municipalities — Barrington, Central Falls, Narragansett, Newport, Portsmouth, Providence, and South Kingstown — can opt out of Rhode Island Energy electric prices and participate instead in a community aggregation plan that leverages bulk buying power to secure lower-priced electricity for residents. The default community winter electric rates, which take effect Nov. 1, have not been announced. About 25% of the 780,000 Rhode Island Energy customers already opt out of the company’s default electric prices.
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