PROVIDENCE – The state is looking to use some of the money made from the regional carbon dioxide cap-and-trade program to help offset surging winter electricity bills for low-income residents.
Gov. Daniel J. McKee and the R.I. Office of Energy Resources on Wednesday announced the proposal to use $3.8 million from the Regional Greenhouse Gas Initiative fund to offer rate relief to 39,000 low-income customers.
The pitch comes after the state’s primary gas and electric operator, Rhode Island Energy, put forth soaring winter electric rates that would increase average residential customer bills by $50 per month. McKee is among several state leaders and groups seeking to step in during the R.I. Public Utilities Commission’s review of the proposed rate hikes, and previously suggested other ways to offset the rising winter electric bills.
McKee’s latest proposal seeks to use a portion of the state’s $9.4 million in revenue from carbon emission auctions to help low-income customers with their winter electric bills. The RGGI spending plan must be approved by state energy administrators following a 30-day public comment period.
If approved, direct bill credits would be issued to Rhode Island Energy customers who qualify for discounted electricity rates based on receiving federal assistance, allowing them to pay rates comparable to last year, according to Christopher Kearns, interim state energy commissioner.
The proposed winter rate hikes, if approved by utility regulators, would start Oct. 1 and last through the end of March.
Nancy Lavin is a PBN staff writer. Contact her at Lavin@PBN.com.
