PROVIDENCE – For months, utility companies and industry experts have warned of rising electricity costs.
Turns out, it’s just as bad – or maybe worse – than they thought.
Rhode Island Energy, the new name for the state’s primary gas and electric company formerly known as Narragansett Electric Co., on Thursday announced filed its proposed winter electric rates with the R.I. Public Utilities Commission, according to a news release. As proposed, the average Rhode Island resident would see their monthly electric bill jump $50 – from $111.15 to $163.10 – over the current amount, based on a 500 kilowatt-hour average monthly use, according to calculations by Rhode Island Energy.
The 17.8 cents-per-kilowatt-hour rate also marks a 63% jump over the winter 2021 rate, which translates to an average monthly bill increase of $35.99 for residential customers, according to the company.
Businesses would also see their electric bills increase by similar amounts, depending on usage, based on the 18.3 cents-per-kilowatt-hour proposal.
Industrial customers, for whom the proposed rate changes apply only to October-December 2022, would see their monthly bills rise by between $5,000 and $1.7 million, depending on usage.
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.
“When prices went down to one of their lowest levels in years this spring, the winter forecasts did not look good. Unfortunately, those forecasts were accurate and the price of electricity this winter is something we have never seen before,” David Bonenberger, president of Rhode Island Energy, said in a statement.
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 proposed rate hikes, if approved by utility regulators, would start Oct. 1 and last through the end of March.
In the mean time, Rhode Island Energy urged its 500,000 electricity customers to start preparing for the coming rate hikes by looking into ways to reduce their energy use – including through company rebates and energy-saving programs – and consider financial assistance such as budget and payment plans. Rhode Islanders can also independently look for the best deal from electricity suppliers rather than relying on the power provided through Rhode Island Energy.
A hearing before the PUC had not been scheduled as of Thursday.
(Update: information from PUC filing added in 2nd, 3rd and fourth paragraphs)
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.
