Block Island residents to buy utility for $1.8M

(Updated 2:35 p.m.)
NEW SHOREHAM – Block Island residents this week voted in favor of buying the controlling interest of Block Island Power Co., the island’s utility, for $1.8 million, and they plan to turn it into a municipal utility, or co-op, district.

Block Island, known formally as New Shoreham, on Monday held a special town meeting to vote on the proposal. Those in support of buying won by two votes, 178-176, as was first reported in The Block Island Times.

The town will buy out two of the three owners of BIPCo, giving it the majority interest.

National Grid PLC, the state’s largest utility, owns nearly the entire electric grid in Rhode Island. The Pascoag Utility District in Burrillville – owns its own grid – but is quasi-municipal, run by a district authority. The Block Island utility will look for the R.I. General Assembly to approve it becoming either a co-op or a special utility district, similar to Pascoag. A similar bill failed to pass during the last legislative session. The utility will be subject to R.I. Public Utilities Commission regulations, including rates and tariffs, similar to other utilities.

- Advertisement -

The state confirmed the vote on Thursday, saying it doesn’t have any jurisdiction over Block Island’s decision to become a municipal utility, as it would should the transaction be among private utilities.
The town will now have to decide how it wants to run the utility. Municipal utilities are typically run by professional management and a board of directors elected by the ratepayers. The town will hold more special town meetings to decide, according to the town’s website.

Correction: An earlier version of this story incorrectly stated the municipal utility would be exempt from certain PUC regulations.

No posts to display