PROVIDENCE – Attorney General Peter F. Neronha has told the R.I. Public Utilities Commission that Rhode Island Energy's proposed bill credits filed with state regulators downplay the financial obligations owed to ratepayers, who he said stand to lose up to $39 million if a proper discount rate is not applied.
Rhode Island Energy recently proposed an alternative method for fulfilling its “Hold Harmless Commitment” through miscellaneous bill credits set to be issued in winters 2026 and 2027, concluding the present value of the commitment to be approximately $148.7 million.
But Neronha argued that the sale of The Narragansett Electric Company to Rhode Island Energy, approved by the Division of Public Utilities and Carriers in 2022, was contingent upon the requirement to protect ratepayers from any future cost increases tied to the acquisition. And rather than using their Weighted Average Cost of Capital, he contends that using the Customer Deposit Rate or the 10-year Constant Maturity U.S. Treasury rate would be “more reasonable.”
Characterizing the proposal as proof of "a company prioritizing profit over people," Neronha said if they provide some upfront financial relief from the hundreds of millions secured for ratepayers during the sale, "that's acceptable, but they must pay what they owe in full."
“Amid rising and unpredictable energy prices, immediate assistance is crucial," he said.
Greg Cornett, president of Rhode Island Energy, said the plan to provide electric customers with monthly credits ranging from $20 to $30, and gas customers with credits between $40 and $50 for January, February and March of both years, offers “ immediate financial relief during the peak energy usage season.
“We are deeply disappointed with the attorney general’s actions and rhetoric,” he said, noting Neronha's staff were part of the proceeding before the Division of Public Utilities and chose not to offer any testimony.
“Unfortunately, playing politics with this issue will jeopardize this relief to customers,” Cornett said.
Rhode Islanders are facing the prospect of higher bills this winter after regulators approved a roughly 16% rate hike for electricity service starting Oct. 1.
On Thursday, House Speaker K. Joseph Shekarchi urged Rhode Island Energy to halt utility shutoffs and waive fees for federal workers affected by the ongoing government shutdown.
(SUBS paragraphs 6-8 with comment from the company.)
Christopher Allen is a PBN staff writer. You may contact him at Allen@PBN.com.
