Rhode Island Public Utility Commission approves reduction in RI Energy's proposed spending
The Rhode Island Public Utility Commission, made up of only two members, reduced a requested increase to a portion of Rhode Island Energy electric bills on Friday.
The proposal would have ultimately increased the Distribution charge, which makes up a portion of the delivery section noted on Rhode Island Energy electric bills, by about 3%, from $32.30 to $33.26 for the average residential customer using 500 kWh a month. Instead, the commission approved an increase which is lower than what Rhode Island Energy had requested.
The original proposal would have meant a roughly $1.01 increase to this section of the average RI Energy customer's bill, according to RI Energy. Officials are working to determine exactly how much the approved reduction will impact that proposal.
"I think this was unusual in its size," Todd Bianco, RIPUC's Chief Economic & Policy Analyst, said. "Tens of millions of dollars is unusual."
Rhode Island Energy released the below statement following the decision.
"Our focus remains on delivering safe, reliable service and maintaining the strength of our energy infrastructure. While we are disappointed that the public utility commission has reduced our requested investments, which we developed in consultation with the Division of Public Utilities & Carriers, we will continue to remain focused on safety and reliability to meet the needs of our customers. Ongoing investment is essential as the energy landscape evolves, and we remain committed to working within the approved framework to maintain our infrastructure for the future."
The PUC also approved increases to the RE Growth and Transmission charges which are listed under the delivery section of customers' electric bills.
The RE Growth charge, which goes toward several state mandated green energy programs, will increase from $4.02 to $5.75. That's a 43% increase.
NBC 10 asked Thomas Kogut, the spokesperson for the Division of Public Utilities and Carriers, if this has charge has been trending up.
"A bit," Kogut said. "Though I will note that the RE Growth Charge itself has been relatively modest in its increase over the years."
The Transmission charge is regulated on a federal level. It covers the cost of moving electricity from power plants to the distribution system in Rhode Island.
The Transmission charge will increase from $20.81 to $23.87 for the average customer, about 15%. Kogut said this has been trending up recently, whereas other charges listed in the delivery section of your bill fluctuate more.
Overall, customers should see their electric bills decrease on April 1, like they typically do. That's because on the supply side of the bill, the PUC approved a significant rate reduction.
However, the supply cost typically rises again in the winter months after being readjusted on October 1.