Charlestown should consider joining our neighbors to get better electricity rates
By Nancy Lavin, Rhode Island Current
In the end, the much-maligned winter electric rate hikes won’t be as burdensome as initial calculations suggested, thanks to a nearly $27 million refund distributed to Rhode Island Energy customers.
These communities work together through Good Energy
to get better electricity rates for resident
Still, the 500,000 state residents who opt to get their electricity from Rhode Island Energy — rather than an outside supplier — will see their electric bills go up starting Oct. 1, under seasonal rate hikes approved by the Rhode Island Public Utilities Commission on Thursday.
Based on calculations submitted by Rhode Island Energy, the average residential customer will see their monthly electric bill increase about 23%, or $31. Business and industrial customers would also see their bills rise, with the increase dependent upon usage.
The seasonal, six-month increase is not unexpected; rates typically increase in the winter due to higher demand and limited supply. State law prevents Rhode Island Energy, the primary utility provider for the state, from profiting off the energy it purchases from third-party suppliers.
The upcoming rate hikes are also slightly lower than rates from last winter.
And, customers will also get separate bill credits to refund them for the $27 million they were overcharged by the company in 2023 due to accounting errors.
For most residential customers, the refund will be given as a one-time credit of $68.60 on their December bills. Low-income customers will get an even higher refund of roughly $140, spread out in monthly installments of $23.47 from November 2024 through April 2025.
The extra refund for customers who qualify for income-restricted government assistance programs attempts to ease the pain for the state’s most vulnerable residents, many of whom are already struggling to afford basic needs. The impact of higher winter utility bills on low income families was the central focus of a public hearing on Sept. 9, in which critics, including affected residents, lamented the increasing costs of food, rent and utilities.
“I think this is the fairest way to do it,” Commission Chairman Ron Gerwatowski said Thursday.
Commercial and industrial customers will also get a one-time refund on their bills, with the amount based on usage.
Customers in seven municipalities — Barrington, Central Falls, Narragansett, Newport, Portsmouth, Providence, and South Kingstown — can opt out of Rhode Island Energy electric prices and participate instead in a community aggregation plan that leverages bulk buying power to secure lower-priced electricity for its residents.
Good Energy, the consultant hired to coordinate the community aggregation plan for participating municipalities in Rhode Island, has not finalized its upcoming winter rates, which take effect Nov. 1, Philip Carr, regional director for New England, said Friday. State regulators do not have any role in the contracts between municipalities and energy suppliers, or the agreed-upon rates.Evelyn Garcia, a spokesperson for Rhode Island Energy, said in a statement Friday reiterated the company’s lack of control over factors driving rate increases.
“We share in the concerns about the high price of energy supply – primarily driven by geo-political events around the globe as well as supply and demand,” Garcia said. “It’s important to note that we charge customers what we pay generators for producing the power, and we don’t earn a profit on the cost of electricity. We are pleased that the bill credits will help to mitigate some of the increase for the average residential customer and all of the increase for low-income customers this coming winter.”
Separately, the company has also proposed higher natural gas rates, which, if approved, would take effect Nov. 1. The proposal, which translates to a nearly $42 increase for the average residential customer’s annual bill, remains under review by state regulators.
Updated to include responses from Rhode Island Energy and Good Energy.
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