Monthly electric bills to increase 24% under proposed winter rates

PROVIDENCE – Electricity prices are expected to rise this winter on average by 24%, though there will be a lighter impact on some customers’ wallets. 

Rhode Island Energy Tuesday filed proposed winter electric rates with the R.I. Public Utilities Commission. The average Rhode Island resident would see their monthly electric bill jump $32.29 per month, 24% over the current rate, based on a 500-kilowatt-hour average monthly use, according to calculations by the utility. This also includes a decrease in the customer service charge from $12 to $6 per month. 

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The 17.7 cents per-kilowatt-hour rate marks a slight decrease over the winter 2022 rate of 17.8 cents per kilowatt hour. Last winter, Rhode Island Energy customers experienced a monthly bill increase of roughly $52 per month, or 46%.   

“This upcoming winter’s supply prices are on par with what we experienced last season,” said Dave Bonenberger, president of Rhode Island Energy. “We all saw in our own homes and businesses how these commodity prices can impact a bill, so it’s more important than ever that customers become familiar with ways they can reduce their energy use and know about the resources available to them to help manage energy costs in the coming months.” 

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If approved, the new rates would take effect Oct. 1. Rhode Island Energy expects rates to fall in April. 

“Knowing these higher prices were coming, we’re grateful that Rhode Island’s elected officials had the foresight to pass legislation this year that will suspend the gross earnings tax on our customers’ bills from December through March,” Bonenberger added. “That will help decrease bills a bit, and we’ll continue to work with state leaders on other ways to help the most vulnerable.” 

The proposed prices are only applicable for those customers who utilize Rhode Island Energy’s default rate, also known as last resort service. These prices do not apply to those customers now on a community aggregation plan or choosing to use an alternate supplier, which accounts for approximately 30% of Rhode Island Energy distribution customers.    

Electric rates typically increase in the winter, but the higher rates are usually offset by lower usage. This year, however, rising demand for natural gas coupled with inflation and unrest in Eastern Europe have sent electricity costs skyrocketing. 

Rhode Island Energy, owned by Pennsylvania-based PPL Corp., emphasized that it does not control electricity costs, and that its rates reflect prices set by suppliers who are selected through a competitive auction process. 

The R.I. Public Utilities Commission has yet to schedule a hearing for the proposed rates.