Rhode Island Energy Proposes Urgent Rate Hikes for Customers
URGENT UPDATE: Rhode Island Energy has just announced plans to significantly increase electric and gas service charges for customers, sparking outrage among residents already struggling with high energy bills. In a press release issued just before the Thanksgiving holiday, the utility company revealed the proposal, which could lead to increased monthly costs starting September 2026.
If approved, the average residential electric customer will see a bill increase of $7.78, representing a 4.83% hike. Meanwhile, gas customers could face a staggering annual rise of $343.53, a dramatic 20.6% increase. This news comes at a time when many Rhode Islanders are grappling with rising living costs, raising urgent questions about affordability.
Governor Dan McKee condemned the proposal, stating, “This is not the time for a utility rate increase. With costs rising nationwide and families already burdened, my focus remains fixed on affordability for every Rhode Islander.” His comments reflect widespread concern among residents and lawmakers who are already facing financial strain.
Rhode Island Energy President Greg Cornett attempted to defend the proposed increases, emphasizing the need for investments in reliability and safety. “This review is about making smart, necessary investments while keeping affordability top of mind,” Cornett stated. However, many residents remain skeptical, given the utility’s recent history of seasonal price surges and overbilling issues.
The utility company has not been able to request a distribution rate increase for the past three years due to state regulations following its acquisition by PPL Corp. from National Grid. As that moratorium comes to an end, Rhode Island Energy claims the hikes are necessary to offset inflation and rising supply costs, including the price of installing underground electric cables that have nearly doubled since 2020.
The Rhode Island Public Utilities Commission is currently reviewing the proposal, with the authority to approve, modify, or deny the rate hikes. Historically, the commission has adjusted such requests to ease the financial burden on consumers. The last time a distribution rate increase was approved, it was 40% less than what National Grid requested in 2017.
Adding to the public outcry, Rhode Island Energy recently faced backlash for overbilling state agencies by $2 million in energy costs for 2024. Many residential customers have also filed complaints regarding alleged overcharges linked to the rollout of 540,000 smart meters across the state.
The commission is expected to consider not just the financial health of the utility, but also the impact on ratepayers. Chairman Ronald Gerwatowski pointed out that the commission could influence customer bill credits, which aim to mitigate the financial impact on consumers.
Governor McKee has vowed to continue advocating for Rhode Island Energy’s original $150 million bill credit plan, promising that his fiscal 2027 budget will include “millions of dollars” in energy savings for residents.
As this situation develops, affected customers are urged to stay informed about the public hearings and commission decisions. The outcome of this proposal could have lasting impacts on energy costs in Rhode Island, making it essential for residents to voice their concerns and stay engaged.
This story will be updated as more information becomes available.
