Rhode Island Energy announced today that electricity supply prices will drop significantly this spring based on a new rate proposal that is before the Rhode Island Public Utilities Commission (RIPUC). The supply decrease applies to those Rhode Island Energy customers who are on the Company’s default supply rate, also known as its Last Resort Service (LRS) price.
If approved, a typical residential customer using 500 kWh per month could see a price drop of more than 40% on the supply portion of their bill if utilizing LRS. Small- to mid-size commercial customers could see up to a 42% decrease in the supply portion of their bill. The newly proposed rates would be in effect April 1 through September 30.
“The cost of many goods and services continue to rise and impact the daily lives of Rhode Islanders, and we work very hard to secure affordable supply for our customers,” said Greg Cornett, president of Rhode Island Energy. “After the second straight winter where New England saw some of the highest supply rates ever recorded, passing on these lower prices to our customers is critical and should provide them some much needed relief.”
Rhode Island Energy’s role
Rhode Island Energy delivers electricity to its customers but does not own the power plants where that electricity is generated or control the cost of electricity supply. The Company is required to buy power for customers who do not choose a competitive supplier and pass on those costs to customers without markup or profit. Rhode Island Energy’s LRS rates are updated twice a year, and the energy secured for its customers is based upon competitive energy auctions. The auctions are designed to secure the lowest rate offered, and there is no utility profit associated with these supply costs.
There were a number of factors contributing to the second straight year of extremely high supply prices, including geopolitical issues, inflation, and other market drivers. And while Rhode Island Energy’s winter rates were lower than many other New England utilities this winter, overall supply prices were considered high compared to winters prior to 2022-2023.
New supply rates proposed to RIPUC
Rhode Island Energy’s Last Resort Service Base Charge for the upcoming summer season, if approved, will be 8.908¢/kWh for residential customers, down from the winter rate of
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16.525¢/kWh. The total supply charge for residential customers, to use if shopping for alternative electric supply options, is projected to be 10.377¢/kWh down from 17.741¢/kWh. For small business customers, the proposed base rate is 8.353¢/kWh, down from the winter rate of 15.915¢/kWh. These rates reflect the base portion of the supply rate.
In February, the Company also made required filings impacting rates that would become effective this spring, including its Annual Retail Rate Filing and Electric Infrastructure, Safety, and Reliability (ISR) Plan. If all filings are approved as proposed, the typical residential customer using 500 kWh of electricity would see a bill decrease of $35.47 per month, starting April 1.
A public comment meeting regarding Rhode Island Energy’s proposed rates has been set for Tuesday, March 12, at 6 p.m. at the RIPUC offices at 89 Jefferson Blvd., Warwick, RI 02888.
Tips to manage better energy bills
Although summer supply rates are typically lower than winter rates, electricity use can increase in the summer when air conditioners are being used to cool homes or businesses. Rhode Island Energy customers can take greater control over their energy bills by:
• Saving energy: Visit RIEnergy.com for tips, programs and rebates that can help. Residential customers can also sign up for a free home energy audit. • Getting bill assistance: Discover programs and tools – including budget billing and payment plans – that can help if you’re having trouble keeping up with your electric bills. To learn more, visit RIEnergy.com or call us at 1-800-743-1104.
• Shopping for a better deal on electricity supply: If you shop, be sure to carefully review the terms and conditions of supplier offers and beware of variable rates that may start low and increase significantly. For tips on smart shopping, visit https://www.ri.gov/app/dpuc/empowerri.