WARWICK – The R.I. Public Utilities Commission on Tuesday unanimously approved Rhode Island Energy’s proposed winter electricity rates that will take effect on Oct. 1.
The six-month rates will be in effect until March 31, 2024, and result in a 24% increase over the current rate to $32.29 per month for the average Rhode Island resident with a 500-kilowatt-hour monthly use, according to Rhode Island Energy filings. Commercial customers’ monthly bills will rise between 10% and 29%…
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Known as the “Last Resort Service Rate,” the pricing is applicable only to customers who utilize this default rate, and does not apply to the 30% of customers enrolled in a community aggregation plan or who use an alternate supplier.
The brief hearing on Tuesday was essentially an administrative stamp on the biannual rate changes because state regulators had previously determined the utility company’s proposal was in line with state statute.
However, chairman Ronald Gerwatowski in a prepared speech addressed public concerns over the burden of energy costs to Rhode Island homes and businesses, and the “cycle” of winter rate bumps driven by electricity prices being “inextricably linked” to the regional natural gas market.
Notwithstanding the state’s long-term transition away from fossil fuels, the spike in winter demand for natural gas for heating ensures higher rates in the colder months.
“Until this transition is complete, this cycle is going to repeat itself,” he said.
State regulators have reiterated the higher rates are unrelated to the delivery side of customers’’ monthly bills, but rather to the supply.
“We do not have the authority to require the company to absorb a loss,” said Gerwatowski, who acknowledged he was “troubled by the size of the increase.”
State officials passed a $35.6 million suspension of the 4% gross receipts tax for this rate period, which was included in the fiscal 2024 budget.
The state is also allocating $3 million to assist low-income customers through the Regional Greenhouse Gas Initiative administered by the R.I. Office of Energy Resources, which will save approximately 38,900 low-income residents approximately $27 a month.
In a Tuesday statement after the vote, Gov. Daniel J. McKee said, “We know that any increase in electric rates will impact all Rhode Islanders…We’re committed to continue funding ways to lower costs for residents across our state.”
Still, the commission continued to receive written comments from residents opposing the rate hike and its consequence on ratepayers.
“As a former landlord, I personally witnessed many families having to make these hard choices,” said Middletown resident Gerald Willis. “Often tenants – Rhode Island residents – would forgo important things just to pay the utility bills.”
Richard Sellers, a renewable energy advocate and founder of Circular Fuels LLC, wrote that the utility is “building on the failed policies of National Grid” and “doing everything in their power to slow the adoption of low cost solar and wind in the state, further driving up costs to consumers.”
Christopher Allen is a PBN staff writer. You may contact him at Allen@PBN.com
