According to Rhode Island Energy, “The proposal is designed to align both electric and gas distribution rates with the cost of delivering safe, reliable energy service while supporting critical infrastructure upgrades, customer service improvements, and targeted affordability programs.”
“This review is about making smart, necessary investments in reliability, customer service, and safety, while also keeping affordability top of mind and strengthening support for those who need it most,” Greg Cornett, president of Rhode Island Energy, said in a statement. “Throughout this process, we want our customers to understand that we are keenly aware of the challenges so many of them are facing, and that we are committed to keeping customers informed and helping them manage their energy costs now and into the future.”
Governor Dan McKee criticized the proposal on Wednesday, saying in a statement, “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,” McKee said.
The filing of the proposal comes after state regulators earlier this week approved winter bill credits that, combined with rate reductions, will save the typical electricity customer about $32 a month in January, February, and March.
Rhode Island Energy, however, had recently withdrawn a separate proposal to provide winter credits to ratepayers that would have saved customers between $20 and $30 a month on electric bills and $40 to $50 a month on gas during the first three months of 2026.
Those credits would have come by way of a “hold harmless commitment” to shield energy customers from costs associated with National Grid’s sale of the Narragansett Electric Company to PPL Corporation in 2022.
Public Utilities Commission Chairman Ronald T. Gerwatowski said on Monday it’s anticipated the company will file another proposal, which he said could be helpful with the “significant,” proposed distribution rate increases on the horizon.
Gerwatowski said the rates cover “the cost of their core distribution, delivery businesses” and added there “will be an exhaustive nine months review process.”
As part of the acquisition of Narragansett Electric, the company had committed to not seek to increase the rate for several years – a commitment that has now expired, he said.
According to a statement from Rhode Island Energy, the rate increase proposal includes “necessary upgrades to aging electric and gas infrastructure,” new investments in its billing system and staffing, and a “redesigned low-income discount rate offering deeper, targeted support for those with the greatest need, without increasing total costs for other customers.”
“Like every other business, the company’s costs have risen significantly due to inflation, supply chain challenges, and evolving regulatory requirements,” the statement said.
Company officials noted that, for example, in 2020, purchasing a foot of underground cable cost $2.30 – now it’s $4.21. A mile of that cable cost $12,000 just five years ago; now it costs $22,000.
“On the gas side of the business, prices have risen as well, with the cost of upgrading a mile of pipeline nearly tripling since the company’s last rate review,” the company said. “The proposed increase is necessary for RIE to continue to meet regulatory mandates, align with the real cost of doing business, and continue delivering around-the-clock service.”
On Monday, Gerwatowski encouraged the company to file a new savings proposal through the hold harmless commitment with “provisions designed to offset some or all” of the distribution rate increases.
“I’m very worried about the rise of electric and gas rates next spring, starting in September of 2026 and continuing into the winter of 2027,” Gerwatowski said.
In his statement on Wednesday, McKee said the hold harmless relief package “must be put back before the PUC and approved.”
“And let me be clear: while I continue fighting for that $150 million in relief, the budget I will submit in January will deliver millions of dollars of permanent, meaningful energy savings for families and businesses across our state,” McKee said.
Material from previous Globe stories was used in this report.
Christopher Gavin can be reached at christopher.gavin@globe.com.