PROVIDENCE – Gov. Daniel J. McKee is the latest state official to sound the alarm over skyrocketing winter electric rates.
In a letter shared publicly on Monday, McKee called on state utility regulators to take steps to offset the winter electric bills for local residents, which under a proposal from Rhode Island Energy are expected to jump $50 per month beginning Oct. 1.
McKee joins a chorus of leaders and groups seeking to step in during the R.I. Public Utilities Commission’s review of the proposed rate hikes. The R.I. Office of the Attorney General, the R.I. Office of Energy Resources and national energy consulting firm Good Energy LP have filed formal motions to intervene in the upcoming hearing process, according to letters sent to state regulators and shared with PBN on Monday.
Intervenors get special allowances to submit testimony and have experts speak during trial-like proceedings in which the proposed rate hikes are reviewed.
McKee is not asking to intervene, but rather sent a letter with several suggestions for how the commission could reduce the upcoming bill hikes for ratepayers.
Specifically, he suggested the commission, which must approve the rates set by the utility company, require the utility company to suspend the $6 monthly charge for residential customers – separate from the amount billed for usage – until next summer. McKee also called for spreading the rate increase over a 12-month period rather than 6 months, a tactic used during a rate hike in 2018 when he was lieutenant governor, according to his letter. Finally, McKee suggested spending $32.5 million from the state’s settlement with PPL Corp, – the parent company of Rhode Island Energy agreed to a $200 million settlement as part of its purchase of the state gas and electric business earlier this year – to give credits to ratepayers during the six months of winter electric rates.
The R.I. Office of the Attorney General, which struck the settlement deal with PPL, called the proposed rate hikes “significant and alarming” in its own letter to state regulators.
Formal requests to intervene, which must be granted by the commission, are due by the end of the day on Monday. A hearing with public comment is scheduled for Sept. 16, according to the calendar on the commission website.
The proposed rate hikes, if approved by utility regulators, would start Oct. 1 and last through the end of March.
Rhode Islands Energy’s rates are based on prices set by suppliers, and said previously the rise in proposed rates is due to rising demand for natural gas coupled with inflation and unrest in Eastern Europe.
Rhode Island Energy did not immediately respond to inquiries for comment about McKee’s letter on Monday.
Nancy Lavin is a PBN staff writer. Contact her at Lavin@PBN.com.
Thank you, Governor. Let’s also make alternative sources of electricity better known and more affordable.