As governor, my No. 1 priority is affordability, and the issue I hear about most when traveling across Rhode Island is the rising cost of utility bills. Families tell me about the delivery charges that are squeezing them every month, and businesses of all sizes tell me that Rhode Island’s high energy rates put them at a competitive disadvantage.
Our state has long faced high energy rates, but they have now risen to the fourth-highest residential electric rates in the country, making it all the more important that we remain focused on the state programs and taxes that add to your bill.
More than half of your energy bill isn’t controlled locally; it’s controlled by federal and regional operators and regulators. In fact, more than half of your energy bill is set by federal and regional markets beyond our control. But 24% of your electric bill in 2025 came from state programs and taxes – costs we do control – and that portion has grown nearly 36% since 2020. At a time when the cost of living is front of mind for so many Rhode Islanders, that’s unacceptable to me.
My Affordability for All agenda tackles these costs head-on. It is a plan that will reduce supply and distribution charges by $1 billion over the next five years by aligning our clean energy programs with neighboring states, reforming utility paving projects and eliminating bonus payments to utility shareholders.
These reforms include adjusting the Renewable Energy Standard, which, if left unaddressed, is projected to add more than $900 million to utility bills over the next five years. By incorporating lower-cost, zero-emission resources such as large-scale hydropower and nuclear, and realigning our schedule with the Act on Climate, we can ensure our emission-reduction goals don’t outpace affordability for families and businesses. My proposal also reforms compensation levels for large solar projects, which have seen ratepayer costs grow by 250% over the last five years, and caps the energy-efficiency charge in line with approaches in Connecticut and New York. Lastly, my plan eliminates unearned utility incentive payments, ensuring ratepayers are not funding unnecessary shareholder bonuses.
In light of actions by the Trump administration that have slowed clean energy development and raised compliance costs, affordability must come first. Without stable electricity rates, we cannot meet our emission-reduction goals. My plan, by continuing but reforming these programs and aligning them with the region, offers a more affordable path to decarbonization.
Rhode Islanders are asking for action. More than 150 residents and businesses submitted testimony at a recent House Finance Committee hearing in support of my proposal to lower utility bill costs.
Seniors from 35 cities and towns wrote that “for many older Rhode Islanders, choosing between heat, lights, food, and medicine has become a monthly reality.”
A certified nursing assistant at Hasbro Children’s Hospital wrote about the strain rising utility costs are placing on her family as a health care worker and mother trying to make ends meet. She emphasized that “utility relief would provide much-needed breathing room for working families like mine who are already stretched thin.”
Businesses and manufacturers, from Walco Electric Co. and Marvel Abrasive Products LLC to the Rhode Island Business Coalition, warned that high energy costs put them at a competitive disadvantage, noting that the budget proposal would “take steps to bring some needed relief to businesses and residents while continuing to address the impacts of climate change.”
I learned long ago as mayor [of Cumberland] that Rhode Islanders without lobbyists or a seat at the table are too often overlooked, but they’re the ones who shoulder the impact of every decision we make. I carry that lesson with me as governor and take to heart the countless stories I hear daily, like the early retiree watching her Social Security stretch thinner each month as costs rise, or the parents feeling the squeeze as groceries and utility bills continue to mount.
As the General Assembly finalizes the fiscal 2027 budget, I urge them to listen to these voices and act. Rhode Islanders are asking for relief, and energy affordability must be a central part of this budget.
Daniel J. McKee was first sworn in as Rhode Island’s 76th governor in March 2021.
