Rhode Island Energy proposes dropping electricity supply prices through Last Resort Service changes
In its latest proposal to the Rhode Island Public Utilities Commission (RIPUC), Rhode Island Energy recently proposed a supply price drop of more than 40 percent for this spring.
Practically speaking, this would bring typical residential customers using 500 kWh per month bills lowered by about $35 per month. The changes target the supply portion of bills, and would see small to mid-size commercial customers get up to a 42 percent decrease, beginning April 1 and running through September 30. This will only apply to customers on Rhode Island Energy’s default supply rate, also known as its Last Resort Service (LRS) price.
The company’s LRS rates are updated twice each year, based on competitive energy auctions. No utility profit is associated with the supply costs, nor does the company own the power plants where that electricity is generated.
“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,” Greg Cornett, president of Rhode Island Energy, said. “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.”
This announcement followed the second straight year of heightened supply prices brought about by geopolitical issues, inflation and other market effects. If accepted by the PUC, though, the Last Resort Service Base Charge change for the upcoming summer season would be set to 8.908¢/kWh for residential customers, down from a winter rate of 16.525¢/kWh, while the total supply charge for residential customers would be around 10.377¢/kWh. On the small business side, customers would gain a proposed base rate of 8.353¢/kWh, down from the winter rate of 15.915¢/kWh.
