PROVIDENCE, R.I. (WPRI) — Gov. Dan McKee is working to reduce energy costs for Rhode Islanders during high-usage winter months.
McKee unveiled a two-year relief package Wednesday that would collectively result in more than $200 million in savings for residential and commercial customers throughout the winter months.
“We know that energy costs are putting real pressure on families and businesses in Rhode Island and across the country, especially during the winter months,” McKee said. “That’s why we are taking action with a package that delivers direct, meaningful relief.”
McKee’s proposal includes $155 million in direct relief to Rhode Islanders in the form of energy bill credits. Specifically, Rhode Islanders would receive approximately $24.50 in electric bill credits and $47.50 in gas bill credits throughout January, February and March of 2026 and 2027.
The direct relief is the result of a settlement between the Division of Public Utilities and Carriers and PPL — Rhode Island Energy’s parent company — related to how ratepayers are protected from corporate income tax impacts following the sale of Narragansett Electric from National Grid to PPL three years ago.
“That sale resulted in significant financial gain to Rhode Island Energy,” Division of Public Utilities and Carriers Administrator Linda George explained. “The division required, as a condition of the sale, that the gain be returned to ratepayers and not shareholders, so this is what it’s about — ensuring that ratepayers are made whole from the sale and not Rhode Island Energy receiving the benefits.”
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This comes months after Rhode Island Energy announced its proposed winter supply rates. If approved, Rhode Islanders would pay 14.77 cents per kWh between Oct. 1 and March 31 for electricity. Though Rhode Island Energy touted that it is 9% lower than last year’s winter rate, it is still higher than the current summer rate of 10.06 cents kWh.
Rhode Island Energy also expects gas rates to decrease by roughly 10% this winter.
“The overall costs we’re talking about are completely out of our control,” Rhode Island Energy’s Brian Schuster said. “This is the market, these are the conditions that we have to pass cent for cent, dollar for dollar, onto our customers. This is what we purchase and have to relay back to our customers.”
The Rhode Island Public Utilities Commission must approve the relief package before it can take effect.
McKee is also asking the Public Utilities Commission for $5 million in direct rate relief to income-eligible Rhode Islanders between December 2025 and January and February 2026.
If approved, the funding — which would come from the state’s Regional Greenhouse Gas Initiative — would provide a roughly $45 monthly bill credit for those three months to more than 36,000 households.
SEE ALSO: RI Energy proposes lower winter rates, more relief for customers
McKee has already secured $20 million in direct rate relief, which would be given to everyone for 12 months starting with July 2025.
The refund was approved by the Public Utilities Commission back in June and is the result of adjustments related to interstate electric service.
Rhode Island Energy President Greg Cornett applauded McKee’s proposal and urged the Public Utilities Commission to “swiftly” approve it.
“As fellow Rhode Islanders who live and work in the Ocean State, we at Rhode Island Energy understand the burden that energy costs pose to our customers, especially during the coldest months of winter,” Cornett said. “There is much about the energy landscape in the state that we cannot control, but we have been taking steps where we can and exploring many options to help reduce costs this winter and next.”
The Rhode Island Public Utilities Commission told 12 News it is in the process of reviewing the proposals in McKee’s relief package.
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