PUC Approves McKee Administration’s Push for More Than $170 Million in Energy Bill Credits

PROVIDENCE, RI - Today, the Public Utilities Commission (PUC) approved more than $170 million in energy bill credits driven by a settlement agreement secured by the McKee Administration through the Division of Public Utilities and Carriers (DPUC). Governor McKee has fought for this relief for more than a year, and the credits will begin appearing on customer bills in October and continue over the following 12 months.

“Energy affordability is my top priority,” said Governor McKee. “I fought for this relief because Rhode Islanders deserve to see these savings returned to them as quickly as possible. More than $170 million in bill credits will provide meaningful help to families and businesses across our state.” 

The bill relief stems from a commitment secured by the DPUC when PPL Corporation acquired The Narragansett Electric Company in 2022. As a condition of the sale, PPL agreed to hold Rhode Island customers harmless from certain acquisition-related tax costs that otherwise would have increased customer rates. Instead of providing that benefit gradually over decades, today’s approval accelerates those savings and returns them directly to customers through bill credits. 

As noted at today’s PUC hearing, the monthly credit amount for all customers, residential, commercial, and industrial, will be determined and finalized by RI Energy by Tuesday, August 25th. 

This support will come in addition to the $28 million in emergency energy assistance directed by Governor McKee in July to help shield Rhode Islanders from higher winter electricity costs. Funded through available Regional Greenhouse Gas Initiative proceeds, those funds will provide direct bill credits to more than 450,000 residential electric customers during the peak winter months, totaling approximately $61 for the average customer. 

The PUC also voted not to advance a proposal from the McKee Administration that would have lowered RI Energy’s profits.  

“Holding the utility company accountable is part of our strategy to make energy more affordable,” said Governor McKee. “I cut utility shareholder incentives in this year’s budget, and separately proposed reducing utility company profits to deliver more savings to ratepayers. The Division of Public Utilities & Carriers presented the necessary evidence to justify lower profits, and it’s troubling that the PUC did not accept their recommendation.  I will keep pressing this issue, and my administration will be back before the PUC to make the case again for putting ratepayer savings ahead of utility profits.” 

McKee Administration Action on Energy 

Today’s relief builds on a series of actions Governor McKee has taken to reduce energy costs and provide relief to Rhode Islanders. 

·     $500 million in long-term energy relief: As part of the FY27 budget and the Governor’s Affordability for All agenda, secured reforms expected to save Rhode Islanders approximately $500 million over the next five years by eliminating unnecessary utility shareholder bonus payments, expanding access to lower-cost energy resources such as nuclear and large-scale hydropower, and reducing near-term costs associated with net metering and utility paving projects. 

·     $37 million in energy tax relief: Suspended the gross receipts tax on energy bills in the FY24 budget, saving Rhode Islanders approximately $37 million. 

·     $20 million in bill savings: Urged the PUC to reduce the energy efficiency charge on electric bills, delivering approximately $20 million in savings for ratepayers. 

·     $13.7 million in winter energy relief: Directed additional RGGI funds over several years to help protect Rhode Islanders who are most vulnerable to rising winter energy costs.