PROVIDENCE – Rhode Island Energy is seeking to raise distribution rates for the first time since 2017, the state’s main utility announced Wednesday.
The company said its costs have risen significantly due to inflation, supply chain challenges and evolving regulatory requirements. This proposal, Rhode Island Energy said, is designed to align both electric and gas distribution rates with the cost of delivering safe, reliable energy service while supporting critical infrastructure upgrades, customer service improvements, and targeted affordability programs.
“This review is about making smart, necessary investments in reliability, customer service, and safety, while also keeping affordability top of mind and strengthening support for those who need it most,” said Greg Cornett, president of Rhode Island Energy. “Throughout this process, we want our customers to understand that we are keenly aware of the challenges so many of them are facing, and that we are committed to keeping customers informed and helping them manage their energy costs now and into the future.”
If approved by the R.I. Public Utilities Commission, the new distribution rates would take effect on Sept. 1, 2026.
A typical residential electric customer using 500 kilowatts per month would pay $7.78 per month, or 4.83% per month more, according to the company. A typical residential gas heating customer would spend an additional $343.53 per year, or 20.60% per year – or roughly $28.63 per month if spread evenly over 12 months.
The company did not say how much more this would cost business, commercial or industrial customers. Representatives from Rhode Island Energy did not immediately respond to requests for comment.
Gov. Daniel J. McKee on Wednesday said this is the wrong time for a rate increase given the current economy. He also vowed to bring the $150 million ratepayer relief settlement his administration negotiated before the PUC again.
“That plan would have delivered direct savings to Rhode Islanders - about $24.50 a month in electric relief and $47.50 a month in gas relief over the next two winters,” McKee said. "And let me be clear: while I continue fighting for that $150 million in relief, the budget I will submit in January will deliver millions of dollars of permanent, meaningful energy savings for families and businesses across our state.”
(UPDATE: Comments from McKee added in 7th and 8th paragraphs.)
