Charged-up RI Energy Deal Approved by Public Utilities Commission. Will Residents See Changes on Their Monthly Bills?

State regulators just rejected Rhode Island Energy’s request to increase their profit margins, but that doesn’t mean the cost of energy is going down.

The Rhode Island Public Utilities Commission just completed a new rate case for the state’s largest utility, increasing the amount the company can spend on infrastructure to adjust for  inflation but rejected a request to increase its return on equity by 1.475%.

“In sum, the series of decisions made by the PUC lowered the extent of those rate increases, including the profit the utility can earn from equity and how much can be financed with equity,” said Acadia Center’s Rhode Island Program Director Emily Koo. “As Acadia Center continually highlights, the current business model of investor-owned utilities like RI Energy incentivizes them to build infrastructure, as it is their fiduciary responsibility to deliver a return for their shareholders.”

Rhode Island Energy also agreed to study how existing rates predictably and measurably overcharge heat pump customers for service, who are overcharged in Rhode Island by $7.7 million per year, according to a new report.

“The preliminary outcomes of the rate case put in place some good first steps for the Act on Climate, including phasing out gas line subsidies, taking a closer look at gas demand forecasting and electrification assumptions, and initiating the planning for heat pump rates,” said Koo. “With that said, there are tools to help drive down ratepayer costs in the future–such as integrated gas and electric planning, which can reduce duplicative spending across gas and electric systems.”

To read the full article from The Providence Eye, click here.