But up compared to current rates
By Nancy Lavin, Rhode Island Current
The seasonal spike in winter electric rates is nearing, with Rhode Island Energy on Thursday submitting its proposed rates for the six-month period that starts Oct. 1.
The proposed 16.4 cents per kilowatt-hour winter electric rate marks a 22.8% increase over existing summer rates. For the average residential customer using 500 kilowatt-hours of electricity per month, this translates to a $31.30 monthly bill increase.
Business and industrial customers would also see their bills rise, with the increase dependent upon usage.
The actual monthly bill also includes extra charges to help fund the company’s renewable energy program and capital infrastructure projects, among other fees.
The seasonal increase in electricity prices is not unexpected, reflecting increasing demand and constrained supply of natural gas during the colder months. The proposed winter rates are 8% less than the rates set for the prior winter, estimated to save the average residential customer $8 a month not including changes to other fees, according to Rhode Island Energy.
“We recognize that high winter energy costs are a challenge for many of our customers, and our team has successfully secured lower prices than we have seen over the last two winters so we can pass those savings on to customers,” Rhode Island Energy President Greg Cornett said in a statement. “We work every day to provide our customers with reliable, affordable and sustainable energy, and we encourage all customers to explore the many ways we offer to help them save energy and money – including our payment plans, assistance programs and variety of energy efficiency solutions.”
The proposed winter rates require approval from the Rhode Island Public Utilities Commission, which has not scheduled a meeting to vote on the proposal as of Thursday. State law mandates regulators approve the rate changes as long as the company can prove it bought the electricity at the lowest possible price, and doesn’t profit from the increase.
Customers in seven municipalities — Barrington, Central Falls, Narragansett, Newport, Portsmouth, Providence, and South Kingstown — can also opt out of the Rhode Island Energy electric prices, instead participating in a community aggregation plan that leverages bulk buying power to secure lower-priced electricity for its residents. Winter electricity for the state’s community electricity aggregation plan, which take effect Nov. 1, had not been announced as of Thursday.
About 25% of the 780,000 Rhode Island Energy customers already opt out of the company’s default electric prices.
Rhode Island Energy’s winter electricity rates start Oct. 1 and continue through March 31.
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