Providence sets rates for community electricity aggregation program

PROVIDENCE – The city has announced the rates for its new community electricity aggregation program set to begin in May. 

The Providence Community Electricity Program will automatically give residents and small businesses an alternative electricity supplier at a lower cost and with more power from renewable sources. The rates will be fixed over an initial six-month period from May through November. 

Three new, competitively priced electricity options will be offered: a 100% renewable energy option, a 50% renewable energy option, and an option with only the minimum amount of renewable energy, each competitively priced at market rates, according to the release. 

The Providence Standard, the option with the minimum amount of 5% voluntary renewable energy, will be 9.3 cents per kilowatt-hour. Providence 50, the 50% renewable energy option, will be 10.22 cents per kilowatt-hour and Providence 100, the 100% renewable energy option will 12.3 cents per kilowatt-hour. 

Providence is among seven municipalities in Rhode Island to launch the state’s first municipal aggregation programs. The other communities are Barrington, Central Falls, Narragansett, Newport, Portsmouth and South Kingstown. Each community is launching its own distinct program in May, but by combining their buying power to procure a common electricity supplier, Next Era Energy Services LLC, the communities were able to secure an electricity supply with a lower rate and more renewable energy than Rhode Island Energy’s supply option. 

The contract awarded to NextEra Energy Services sets the default supply and pricing provided to participating customers to include 10% more renewable energy than the state minimum. Ratepayers can opt to increase or decrease the percentage of renewable energy in their individual supply, which will impact prices, Jamie Rhodes, sales manager for Good Energy LP, said in September. 

All Providence residential and business electricity customers currently using Rhode Island Energy’s Last Resort Service will be automatically enrolled in the Providence Community Electricity Program’s standard electricity option as of their May 2023 meter read date.  

Residents will receive a letter notifying them of the upcoming enrollment, providing instructions on how to choose a different program option other than the standard they are automatically enrolled in, and how to opt-out of the Providence Community Electricity Program. Anyone that does not want to participate in Providence Community Electricity may opt out without penalty at any time.