Rhode Island Settlement Paves Way for Modern, Consumer-Friendly Electricity Grid and Further Progress on Clean Energy
PROVIDENCE – Today, a comprehensive settlement was filed on behalf of all parties in two related dockets at the Rhode Island Public Utilities Commission: National Grid’s rate case and the Power Sector Transformation docket. Acadia Center strongly supports the settlement because it begins to reform the utility business model, makes significant investments in a modern and efficient electricity grid and new clean energy programs, and lays out a pathway for even more ambitious and rigorous reforms. It also saves ratepayers over $40 million in base rates across three years from National Grid’s original proposal and results in a 25-30% bill discount for low income customers. This settlement follows in the footsteps of the Power Sector Transformation Initiative created at the direction of Governor Gina Raimondo.
“New clean energy technologies at lower costs offer an historic opportunity to build a modern, more equitable energy system that benefits consumers, reduces pollution and improves economic productivity,” said Daniel Sosland, president of Acadia Center. “With this settlement, Rhode Island jumps into a leadership role among the states on utility regulatory reform necessary to position it for further progress in coming years. Acadia Center is thrilled that Rhode Island is moving to embrace this future and remains committed to ensuring that the state and its residents see significant benefits from these reforms.”
Acadia Center participated in every phase of the Power Sector Transformation process in 2017 and filed testimony in both dockets covered by today’s settlement. Acadia Center has long advocated for states to embrace the types of reforms included in the settlement, through reports and materials such as UtilityVision. This includes reforms to the utility business model that place less emphasis on capital investments and more on results, improvements to the efficiency, intelligence and flexibility of the electric grid, and planning improvements to efficiently use local energy resources and provide customers with better incentives.
“Rhode Island is poised to be the first state in New England to implement serious reforms to the utility business model,” said Amy Boyd, senior attorney at Acadia Center. “This is a key step to incentivizing utilities to act in the public interest, instead of merely advancing their own bottom line.”
The settlement also includes new clean energy programs to facilitate increased adoption of efficient electric heating technologies, new investments in electric vehicle charging stations, and competitive procurements for advanced energy storage. It creates a pathway for critical next steps such as a study of advanced metering functionality and time-varying rates and further utility business model reforms.
“Electrification of heating and transportation are crucial pieces of a long-term greenhouse gas reduction strategy. New programs and investments should help push Rhode Island forward in the coming years.” said Mark LeBel, staff attorney at Acadia Center. “In addition, Acadia Center looks forward to next steps and further reforms in Rhode Island. Providing Rhode Island ratepayers with more efficient electricity rates that reflect the costs of electricity usage and help lower peak demand will be key to a smarter electricity system and integrating electric vehicles and heating.”
“Acadia Center would like to thank the Division of Public Utilities and Carriers, National Grid, the Office of Energy Resources and other intervenors for all of the hard work and collaboration that went into this settlement,” said Erika Niedowski, policy advocate in Acadia Center’s Providence office. “Collaboration and an open exchange of ideas is crucial to developing policy solutions that meet the needs of a wide range of stakeholders. Establishing the Power Sector Transformation Advisory Group provides a new forum to continue this dialogue on key issues in the coming years.”
Media Contacts:
Erika Niedowski, Policy Advocate, Rhode Island Office
eniedowski@acadiacenter.org, 617-742-0054 x103
Krysia Wazny, Communications Director
kwazny@acadiacenter.org, 617-742-0054 x107