Governor McKee Highlights Two-Year Relief Package to Cut Energy Costs for Rhode Islanders by $180 Million
Published on Wednesday, September 10, 2025
Governor Calls on PUC to Take Immediate Action to Approve this Proposal and Provide Further Relief
PROVIDENCE, RI – Ahead of the October 1 Rhode Island Energy winter rate increase, Governor Dan McKee today highlighted resources put on the table by his administration, resulting in a two-year relief package to help lower energy costs for Rhode Islanders by approximately $180 million.
The Governor is also calling on the Public Utilities Commission (PUC) to adjust the various charges that appear on Rhode Islanders’ energy bills to produce a minimum of $25 million in additional relief, which would bring the total relief package to over $200 million.
“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,” said Governor McKee. “That’s why we are taking action with a package that delivers direct, meaningful relief. By leveraging several different resources, we’re putting money back in people’s pockets.”
The Governor’s plan includes:
- Approximately $155 million in direct rate relief for all residential and commercial customers during January, February, and March of 2026 and 2027. This funding is the result of a settlement between the Division of Public Utilities & Carriers and PPL related to how ratepayers are protected from corporate income tax impacts following the 2022 sale of Narragansett Electric from National Grid to PPL. Once approved by the PUC, this funding would provide approximately $24.50 in electric bill credits and gas bill credits of approximately $47.50 per month during the 3 months in the 2025-2026 and 2026-2027 winter season.
Governor McKee continued, “I’m calling on the PUC to act immediately to approve this settlement reached by my administration and PPL, and to ensure every dollar is returned to Rhode Islanders as credits on their utility bills.”
- $5 million in direct rate relief to income-eligible electric customers that will support 36,649 income-eligible Rhode Islanders during December 2025 and January and February 2026. This funding comes from the state’s Regional Greenhouse Gas Initiative (RGGI), which is managed by the Office of Energy Resources. This funding will provide an approximately $45 monthly bill credit for 3 months to income-eligible households.
In addition, the McKee Administration secured:
- Approximately $20 million in direct rate relief for all customers for 12 months starting back in July 2025 through July 2026. This refund was approved by the PUC in June as a result of adjustments related to interstate electric service. This amount is the difference between borderline sales revenue received by RI Energy from the Massachusetts Electric Company and expenses paid by RI Energy to the Massachusetts Electric Company.
“The RGGI direct rate relief will provide critical support to Rhode Islanders during a period when energy bills can impact households,” said Acting Rhode Island Office of Energy Resources Commissioner Chris Kearns. “We’re continuing our efforts to deliver direct rate relief to income-eligible households. We also encourage all households to take advantage of free home energy assessments and available rebates through the state’s energy efficiency programs to help reduce energy use and costs over the long term.”
"I applaud the hard work of the Division’s Advocacy Section, which, through several months of negotiations, developed significant rate relief when it is most needed by Rhode Islanders,” said Division of Public Utilities and Carriers Administrator Linda George. “As always, we will continue to strive for ratepayer affordability while maintaining utility system safety and reliability.”