PROVIDENCE – Electric rates might be going down for Rhode Island Energy customers this spring.
The state’s main utility company announced Thursday that it has filed a new rate proposal with the R.I. Public Utilities Commission that could lower customer’s bills by as much as $17 per month, Rhode Island Energy said.
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If approved, the new rates would take effect on April 1.
“This has been a challenging winter for our customers as they deal with higher prices for many of the goods and services they buy, including electricity,” said Dave Bonenberger, president of Rhode Island Energy. “For the families and businesses we serve, the proposed rates should be welcome news.”
R.I. Energy is proposing 9.125 cents per kilowatt-hour for this spring and summer, a decrease from the winter rate of 17.149 cents per kilowatt-hour. For small-business customers, the proposed rate is 8.798 cents per kilowatt-hour, down from the winter rate of 16.883 cents per kilowatt-hour.
If approved, a typical residential customer using 500 kWh per month could see a price drop of more than 25% on the supply side of their bill if utilizing Rhode Island Energy’s Last Resort Service price, the utility company said. Small to midsize commercial customers could see a 27% to 28% decrease on the supply side of their bill. The newly proposed rates would be in effect from April 1 through Sept. 30, according to the release.
“At the same time, higher electricity prices are likely to remain an issue unless – or until – there’s a fundamental shift in market forces. With this in mind, customers can act now to make costs more manageable year-round. This includes taking advantage of budget billing, seeing if they qualify for discount rates and getting a free energy audit for ways to save,” Bonenberger said.
A public hearing for the proposed rates will be held on March 7 at the RIPUC offices at 89 Jefferson Blvd. in Warwick.
Earlier this week, Providence 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 10% 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.
