WARWICK – Utility shutoffs. Homelessness. Even death.
These were among the dire predictions that local residents, advocacy groups and lawmakers warned would result from increases to winter energy bills during a packed public hearing on Friday. The more than three-hour meeting featured impassioned testimony in which many urged state utility regulators to reject Rhode Island Energy’s proposed rate hikes, denouncing them as “insensitive,” and “criminal.”
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But the financial burden historic rate hikes will place on cash-strapped residents isn’t reason enough for the R.I. Public Utilities Commission to stop them. As Chairman Ronald Gerwatowski pointed out, the commission’s review and approval of the biannual rate adjustments is bound by strict legal standards.
State law dictates that as long as the utility operator follows the agreed-upon plan to buy electricity and gas from suppliers and resell to local customers, without acting “negligently” or “imprudently,” state regulators must approve their proposed rate increases. None of the groups or people protesting the rate hikes have shared evidence of such negligence or imprudence, Gerwatowski said
Indeed, Rhode Island Energy has framed its rate hikes as a symptom of market conditions beyond its control including Russia’s invasion of Ukraine, increasing demand for natural gas and inflation.
That doesn’t mean there aren’t ways to lessen the pain. The initial proposals for electric and gas rates would increase the average residential bill by $50 and $19 a month, respectively.
However, Gov. Daniel J. McKee on Friday reiterated his proposal to use $32.5 million from the state’s settlement with PPL Corp. – the parent company of Rhode Island Energy – to give credits to ratepayers during the six months of winter electric rates. This would amount to about $60 in one-time credits for electricity bills for eligible customers, according to analysis by Rhode Island Energy.
McKee has also suggested using $3.8 million from the Regional Greenhouse Gas Initiative fund to offer rate relief to 39,000 low-income customers, which would amount to a one-time, $105 credit for eligible customers, according to analysis by the R.I. Office of Energy Resources.
The R.I. Office of the Attorney General in a written submission to state regulators called for company to consider deferring certain supply costs and making sure customers know about its existing payment and relief programs.
“Every time you do a little thing, it will amount to a substantive thing,” McKee said Friday.
But not everyone agreed with that logic. Among the dozens of people who spoke on Friday and the more than 50 written public comments, many declared that no rate increase would be palatable.
Rep. David Morales, D-Providence, pointed out that the credits from the gas cap -and-trade revenue are only available to the lowest income residents who qualify for federal assistance programs such as food stamps, leaving out many households who would also be hard-hit by rate hikes.
“That relief is not adequate by any stretch of the imagination,” Morales said.
Rep. Scott Slater, D-Providence, called for state regulators to reject the proposed rates and set new limits on the profit margins for Rhode Island Energy instead of passing the company’s cost increases onto hard-hit ratepayers.
“Don’t come back to us later and say you did us a favor by giving us a 30% increase instead of a 46% increase,” Slater said. “Don’t insult my constituency.”
Peter Nightingale, a physics professor at the University of Rhode Island, framed it even more dramatically.
“You can do the right thing or you can wash your hands in innocence,” he said.
The commission will continue to review the proposed rate increases in evidentiary hearings Friday afternoon and on Sept. 19, with a vote on the electric rate hikes at a later meeting, according to Gerwatowski. If approved, the electric rate increases would take effect Oct. 1.
A decision on the proposed gas rates has not been scheduled. If approved, new gas rates would take effect Nov. 1.
Nancy Lavin is a PBN staff writer. Contact her at Lavin@PBN.com.
