Rhode Island residents and businesses in the seven municipalities with independent electricity programs will pay slightly less than Rhode Island Energy customers this winter.
The 14.69 cents per kilowatt-hour “standard” usage rate for participating municipal customers, announced by the city of Providence Wednesday, is 0.5% less than the 14.77 cents base usage rate that took effect for Rhode Island Energy customers Oct. 1. For the average residential customer who uses 500 kilowatt hours of electricity per month, this translates to a $2.50 savings.
About 25% of the 780,000 Rhode Island Energy customers already opt out of the company’s default electric prices.
That includes those who participate in community choice aggregation plans, which have been available in Barrington, Central Falls, Narragansett, Newport, Portsmouth, Providence, and South Kingstown since May 2023. By leveraging bulk buying power through a third-party supplier, NextEra Energy Services, the municipal plans aim to reduce electricity prices while boosting energy from renewable sources — 5% more than mandated under state law in the “standard” plan.
Higher-priced community electricity plans are also available for residents who choose to purchase power with an even greater supply from renewable energy sources, up to 100%, with a corresponding 17.65 cents per kilowatt-hour price for this winter.
The community aggregation seasonal rates start Nov. 1, and last through May 1.
Additional relief may be on the way for all residents, regardless of where they buy electricity, under a series of bill credits proposed by Rhode Island Energy executives and Gov. Dan McKee. The discounts, which would shave an estimated $20 to $30 off monthly electric bills and $30 to $40 off gas bills for the first three months of 2026 and 2027, are meant to offset tax costs tied to the 2022 sale of the state electric and gas business. The Rhode Island Public Utilities Commission is still reviewing the proposal ahead of a Jan. 1 start date.
Customers already enrolled in community aggregation plans do not have to take action to continue service through the winter. Enrollment information is available through each participating municipality
This story was originally published by the Rhode Island Current.
