PROVIDENCE – It’s going to be an expensive winter for Rhode Island residents and businesses, with Rhode Island Energy warning of higher heating costs amid global unrest and demand surges.
The state’s primary gas and electric company on Thursday issued a statement based on new filings to state utility regulators for natural gas rates. If approved, the average residential customer would see their heating bill increase 15%, or $19 per month ($227 annually), starting Nov. 1. Increases in rates to small-business customers would translate to a 16% jump, or $29 more per month and $344 annually.
The proposed rate hikes come on the heels of similar increases to winter electric rates, which would add an extra $50 to the average residential customer’s bill starting Oct. 1. Both proposals require approval from the R.I. Public Utilities Commission, though the rates are somewhat beyond regulation control – Rhode Island Energy sets its expected rates based on costs to buy and deliver gas and electricity from other suppliers.
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The company in a statement cited increased demand for residential heating and limited access to natural gas, particularly amid ongoing conflict in Ukraine, as reasons for higher costs.
Ahead of the proposed rate hikes, the company highlighted financial relief programs including bill credits and debt forgiveness for eligible customers, as well as energy efficiency upgrades to reduce energy use.
Lawmakers, including Gov. Daniel J. McKee, have suggested other ways to help lessen the blow of higher energy costs such as spreading out the rate increase over a longer time period and using $32.5 million money from the state’s settlement with PPL Corp, – the parent company of Rhode Island Energy agreed to a $200 million settlement as part of its purchase of the state gas and electric business earlier this year – to give credits to ratepayers. The settlement already included $50 million in ratepayer credits and $43.5 million in debt forgiveness from missed payments by low-income ratepayers.
A hearing schedule for the commission’s review of the proposed gas rates was not available online as of Friday morning.
Nancy Lavin is a PBN staff writer. Contact her at Lavin@PBN.com.
