Cornett Announces RI Energy Files With PUC for Gas and Electricity Rate Increases

Cornett Announces RI Energy Files With PUC for Gas and Electricity Rate Increases

Rhode Island Energy President Greg Cornett, appearing on GoLocal LIVE on Wednesday morning, made a major announcement about the company filing for significant rate increases for both gas and electricity.

“The news is we've this morning filed our first base distribution rate review, since 2017, asking the the commission to take a look at our cost of doing business and and evaluate the distribution component of our electric and gas rates to help us address, the cost of providing business so that we can continue providing safe and reliable service to our customers," said Cornett.

 

Nearly $500 a Year Impact

“And what's that mean for the folks here in Rhode Island? Well, first and foremost, I want to make sure everybody understands nothing's changing today, nothing's changing tomorrow. This is the first step in what's a 9-month very intensive regulatory process. But the proposal that we've put in place would result in an increase of a little over $7.75 for a typical residential customer on the electric side [per month]. On the gas side, the increase is about $340 a year," he said. 

 

Reason for the Increases

The company said RIE has worked to control costs and delay rate adjustments. However, like every other business, the company says its costs have risen significantly due to inflation, supply chain challenges, and evolving regulatory requirements. 

For example, on the electric side of the business, in 2020, purchasing a foot of underground cable cost the company $2.30. Today, that same foot now costs $4.21. For a mile of this cable, which was $12,000 in 2020, the cost has now increased to $22,000. Additionally, before the COVID-19 pandemic, an electrical “surge protector” cost $60. Today, the price of these devices has doubled to over $120 per unit. On the gas side of the business, prices have risen as well, with the cost of upgrading a mile of pipeline nearly tripling since the company’s last rate review.

 

 

The Rate Filing With the PUC Will Expand Options for Lower-Income Customers

Cornett pointed out in the interview, “We're also proposing a very significant change to our low-income discount rate program.”

He hopes this provides some significant relief for Rhode Islanders facing economic challenges. 

Cornett also discussed offshore wind and other developments -- watch the full interview above.