PROVIDENCE – Gov. Daniel J. McKee announced a two-year, $180 million relief package on Wednesday to lower energy costs for Rhode Islanders ahead of the proposed Oct. 1 Rhode Island Energy winter rate hike.
The governor also urged the R.I. Public Utilities Commission to adjust energy bill charges to produce a minimum of $25 million in added relief, which would bring the total relief package to more than $200 million.
“We know that energy costs are putting real pressure on families and businesses in Rhode Island and across the country, especially during the winter months,” McKee said
. “That’s why we are taking action with a package that delivers direct, meaningful relief. By leveraging several different resources, we’re putting money back in people’s pockets.”
The governor’s plan includes approximately $155 million in direct bill credits for all residential and commercial customers during the winter months of 2026 and 2027. The funding stems from a settlement between the R.I. Division of Public Utilities & Carriers and PPL Corp., ensuring that ratepayers benefit from corporate income tax protections related to the 2022 sale of Narragansett Electric from National Grid to PPL.
If approved by the PUC, customers would receive about $24.50 in monthly electric bill credits and $47.50 in monthly gas credits during January, February and March of each year.
McKee called on the PUC to act immediately to approve the settlement reached by his administration and PPL, "and to ensure every dollar is returned to Rhode Islanders as credits on their utility bills."
McKee's plan also calls for $5 million in Regional Greenhouse Gas Initiative-funded relief for 36,649 income-eligible electric customers, providing a $45 monthly bill credit for three months to income-eligible households from December 2025 through February 2026. This funding comes from the state’s Regional Greenhouse Gas Initiative, which is managed by the R.I. Office of Energy Resources.
The McKee administration also secured approximately $20 million in direct rate relief for all customers for 12 months starting in July 2025 through July 2026. This refund was approved by the PUC in June as a result of adjustments related to interstate electric service. This amount is the difference between borderline sales revenue received by Rhode Island Energy from the Massachusetts Electric Co. and expenses paid by Rhode Island Energy to the Massachusetts Electric Co.
“The RGGI direct rate relief will provide critical support to Rhode Islanders during a period when energy bills can impact households,” said Chris Kearns, acting commissioner of the R.I. Office of Energy Resources. “We’re continuing our efforts to deliver direct rate relief to income-eligible households. We also encourage all households to take advantage of free home energy assessments and available rebates through the state’s energy efficiency programs to help reduce energy use and costs over the long term.”
Linda George, administrator of the R.I. Division of Public Utilities and Carriers, applauded what she described as "the hard work of the Division’s Advocacy Section, which, through several months of negotiations, developed significant rate relief when it is most needed by Rhode Islanders.”
Matthew McNulty is a PBN staff writer. He can be reached at McNulty@PBN.com or on X at @MattMcNultyNYC.
