Rhode Island regulators reject Rhode Island Energy rate plan, clearing $170 million in bill credits
Attorney General Peter F. Neronha said his office's advocacy before the Public Utilities Commission held the utility's allowed profit rate flat and secured additional credits for gas and electric customers.
Rhode Island Attorney General Peter F. Neronha said his office's advocacy in Rhode Island Energy's distribution rate case helped secure about $170 million in bill credits, climate requirements and other benefits for the utility's customers.
The state Public Utilities Commission issued its decision in the case on Aug. 21, siding with the attorney general's office on nearly all of its positions, the office said. Lawyers from the office took part in 17 days of hearings in June and July and argued on Aug. 13 that the commission should reject the company's bid to raise its profits.
According to the attorney general's office, the commission conditionally approved customer bill credits stemming from an agreement the office required when National Grid sold Narragansett Electric, on the condition that the company use a discount rate the office proposed. The company agreed, adding $21.3 million in bill discounts for about $170 million, the office said.
The commission also rejected the company's multi-year rate proposal, allowing only a one-year increase, and denied its request to raise its allowed return on equity from 9.275% to 10.75%, the office said. Regulators cut the company's equity ratio to 52% from a proposed 57%, ordered subsidies for new fossil fuel line extensions phased out over three years beginning with a 33% reduction in April 2027, and required coordinated long-term gas and electric planning to comply with the state's Act on Climate law.
Rhode Island Energy had asked for more than $200 million in higher distribution rates for its gas and electric systems, saying a rate case was needed "to reflect what it really costs to deliver safe, reliable energy." The office said the company will receive significantly less. It was the utility's first base distribution rate case since 2018.
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