Rhode Island Energy has formally requested increases in electric and gas service charges, a move that could significantly impact customers across the state. In a press release issued just before the Thanksgiving holiday, the utility announced its application to the Rhode Island Public Utilities Commission, seeking approval for the rate hikes that, if authorized, would take effect in September 2026.
According to the proposal, the average residential electric customer would see their monthly bill rise by $7.78, approximately a 4.83% increase. For residential gas customers, the annual cost would increase by $343.53, marking a substantial 20.6% rise. These changes are intended to fund the rollout of 540,000 smart meters statewide, as well as to address rising operational costs.
Governor Dan McKee criticized the proposal, emphasizing the financial strain on Rhode Islanders. In a statement, he remarked, “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.”
The utility’s president, Greg Cornett, defended the proposed increases during a press briefing. He stated that the request aims to make “smart, necessary investments in reliability, customer service, and safety,” while keeping affordability at the forefront. Cornett acknowledged the current economic challenges faced by many residents and expressed a commitment to helping customers manage their energy costs.
Regulatory restrictions have prevented Rhode Island Energy from requesting a distribution rate increase for the past three years, following the sale of gas and electric operations from National Grid to PPL Corp., the parent company of Rhode Island Energy. With the moratorium ending, the utility argues that the rate hikes are essential to offset inflation and increased supply chain costs. For instance, the cost of installing a one-mile section of underground electric cable has nearly doubled since 2020, rising from $12,000 to $22,000 today.
Despite the company’s justification for the proposed increase, it has faced backlash from state lawmakers, consumer advocates, and residents who are already grappling with seasonal surges in electricity prices. These prices had reached record highs three years ago and have only slightly declined since then. Adding to the public ire are reported accounting errors, which revealed that Rhode Island Energy overbilled state agencies by $2 million in their 2024 energy bills.
The Rhode Island Public Utilities Commission is currently reviewing complaints from residential customers who claim they have been overcharged, particularly in relation to the rollout of the new smart meters. The commission has the final authority over any proposed increases in electric and gas rates. Its three-member panel evaluates the financial stability of the utility alongside the affordability for ratepayers and the necessity of proposed capital projects.
Historically, the commission has adjusted proposed rate increases to lessen the financial impact on consumers. The last review, under National Grid’s ownership, resulted in approved rates that were 40% less than what the company had requested. Recently, Chairman Ronald Gerwatowski noted the commission’s ability to influence distribution of customer bill credits, which Rhode Island Energy must refund under the terms of the 2022 sale.
Earlier this month, Rhode Island Energy withdrew its initial proposal amid scrutiny over its calculations but plans to file an alternative scheme early next year. The proposed discounts, intended to protect ratepayers from tax and accounting expenses related to the sale, could mitigate some of the anticipated higher service charges, according to Gerwatowski.
Governor McKee has committed to advocating for Rhode Island Energy’s original $150 million bill credit plan and indicated that his fiscal 2027 budget proposal will include “millions of dollars” in energy savings for residents.
As discussions continue, Rhode Island Energy faces an uphill battle in justifying its rate increases to a public already weary of rising costs. This story will be updated as new information emerges.
