Rhode Island was the first state to commit to a 100% renewable energy goal by 2033, but Gov. Daniel J. McKee’s administration is attempting to revise the state’s renewable and clean energy policies amid rising energy costs and economic pressures.
If successful, McKee’s proposal would be a significant shift in the state’s approach to moving toward renewable energy.
Legislation approved in 2022 required Rhode Island to transition entirely to renewable energy sources for its electricity needs by 2033.
Now McKee proposes to push the deadline to 2050, among a host of other tweaks, including eliminating incentivized payments to utility shareholders, which could save ratepayers around $2.6 million annually.
To sweeten the pot, McKee is touting $1 billion projected savings to Rhode Island ratepayers, cutting nearly $64 million from bills in 2027, and $572 million over the next five years, according to the R.I. State Office of Management and Budget.
The administration “remains committed to an affordable energy strategy that still provides a pathway to decarbonization and leverages lower-cost, zero-emission solutions,” said McKee spokesperson Olivia DaRocha. “[But] rising energy costs are driving family budgets to the breaking point; Rhode Islanders need relief now, not later.”
DaRocha also laid blame in part on President Donald Trump, who has attempted to stop offshore wind development. “The Trump administration has drastically changed the energy landscape,” she said.
The conservative, free-market group Rhode Island Center for Freedom & Prosperity has launched an online petition urging policymakers to pivot away from the current energy strategy, arguing that it leads to soaring electricity prices and the risk of blackouts.
“As public outcry about the high costs and risks associated with existing green energy policies continues to grow, many other Northeast states have either modified, or signaled their intent to modify, their unsustainable policies,” said Michael Stenhouse, the center’s CEO.
Senate Minority Leader Gordon Rogers, R-Foster, said problems in the renewable energy policy framework were obvious from the beginning.
In 2023, electricity suppliers, including Rhode Island Energy, spent nearly $60 million to meet the 23% renewable electricity requirement for the year, a roughly $52 million increase from five years prior, when the standard was 13%. “The Act on Climate was definitely flawed from the start,” Rogers said.
Others in the energy sector who advocate prioritizing renewable energy expansion now fear McKee’s proposals might hinder progress toward energy conservation and efficiency measures.
Emily Koo, senior policy advocate and Rhode Island program director at the clean energy advocacy organization Acadia Center, argues that cutting back on renewable targets will exacerbate the crisis facing residents.
“To tackle energy costs, Rhode Island’s focus should be on building more renewables, not on rolling back our targets,” she said.
Koo said that delaying the state’s renewable energy standard, for example, would increase Rhode Islanders’ dependence on volatile natural gas markets and undermine the state’s economy.
“The state of Rhode Island should be doing everything within its power to bring more local clean energy online and coordinate with neighboring states to unlock the most affordable clean energy resources,” she said.
A legislative commission to study the implementation of the Act on Climate has been tasked with making recommendations to lawmakers by May 1. Rogers criticized establishing the commission after the act’s passage instead of studying it beforehand.
“We need a full repeal and to start from scratch,” Rogers said.
