New rates kick in today
By Nancy Lavin, Rhode Island Current
The seasonal swings in energy bills will be a lot bumpier this year under a series of extra charges and discounts authorized by state utility regulators.
The upshot: Rhode Island Energy customers will have to start paying more in fees beginning Sept. 1 under a $138 million revenue plan authorized by the Rhode Island Public Utilities Commission.
Distribution rate increases were finalized under a series of unanimous votes by utility regulators on Aug. 21, though final bill impacts were not publicly available until Monday.
The calculations mark the culmination of a nine-month review spanning thousands of pages of analysis and meetings among company consultants, state regulators and ratepayer advocates.
“It was quite an undertaking,” Commission Chairman Ron Gerwatowski said at a public meeting Monday. “It was a lot of schedules.”
Acknowledging the public interest in the long, complicated and confusing regulatory review process — namely, what it will mean for customers’ bills — Gerwatowski read aloud from a staff-prepared analysis on the expected bill impacts during the 15-minute meeting.
Rhode Island Energy initially proposed a $230 million, two-year set of fee hikes, insisting that extra charges on the distribution side of the bill — separate from usage rates — were necessary to recoup the rising cost of supplies, labor and new investments. The company also wanted to increase the maximum rate of return, or profit margin, from the existing 9.3% cap to 10.8%.
If approved as requested in November 2025, the company’s revenue generation plan would have raised average residential monthly electric bills by $7.78 and average annual gas bills by $343.53 in the first year.
Ratepayer advocates, including the administrative arm of the state utility agency, the Division of Public Utilities and Carriers, argued against the new margin cap, which would have been higher than the 9.7% national average, and exceed caps for other utilities in New England. They also warned about the burden for Rhode Island ratepayers, who are struggling to keep up with existing bills amid the broader affordability crunch.









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